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Joint Venture Between Cypress West, TPG Angelo Gordon Will Focus On Acquisition Of Medical Office Assets In Strategic, High-Growth Sunbelt Markets

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CBRE Investment Banking announced that it has arranged a programmatic joint venture between Cypress West Partners and TPG Angelo Gordon, which has the ability to acquire up to $300 million in medical office assets across the Sunbelt region over the next two years.

The joint venture has already completed its first acquisition – an 85,000 square-foot medical office facility at 9377 E. Bell Road in Scottsdale, AZ

The joint venture between Cypress West and TPG Angelo Gordon will focus on the acquisition of medical office assets in strategic, high-growth Sunbelt markets that provide the opportunity to generate core-plus and value-add returns through leasing, repositioning, and redevelopment.

The joint venture has already completed its first acquisition – an 85,000 square-foot medical office facility at 9377 E. Bell Road in Scottsdale, AZ – and will also be seeded by the recapitalization of a four-asset portfolio that totals approximately 200,000 square-feet across Arizona and California and is 97% occupied by a diverse roster of healthcare tenants.

“This is an exciting opportunity to partner with a like-minded team and leverage our expertise in investing and operating high-quality medical office assets,” said Chris Cumella, Chief Executive Officer and Co-Founder of Cypress West.

Frank Virga, Managing Director, U.S. Real Estate at TPG Angelo Gordon, added, “This strategic joint venture highlights our strong conviction in the medical office sector and the attractive opportunities we believe lie ahead in the market.”

“This initiative brings together two leading specialists in the sector, who can leverage their combined experience in scaling their medical office platform. We’re thrilled they were able to come together and expect an active partnership ahead,” said Michael Yang, Senior Managing Director of CBRE Investment Banking.

 

Source: HREI

 

Artemis Recapitalizes Six Properties With Rendina To Seed New Joint Venture For Development And Acquisition Of MOBs Nationwide

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Newmark announced that it has arranged a strategic joint venture seeded by a national MOB portfolio recapitalization.

Rendina Healthcare Real Estate  is a leading, national medical office development and acquisition platform, fully integrated with development, ownership, management and leasing capabilities. A pioneer in the healthcare real estate development sector, Rendina has developed more than 8.5 million square feet during its 35-year history.

This transaction marks an inflection point in the growth of the company as the firm partners with Artemis Real Estate Partners, an institutional investment manager that focuses on equity and debt investments in healthcare real estate across the United States.

Rendina and Artemis have entered into a joint venture to develop and acquire a national portfolio of healthcare properties. The venture was seeded with the recapitalization of six properties developed by Rendina. The nearly 230,000 square foot portfolio spans four states, with concentration in the Northeast, and is leased to some of the leading healthcare systems and physician group practices in the country. The joint venture will immediately invest in an additional 140,000 square foot medical office development, followed by a near-term development and acquisition pipeline.

Newmark’s Healthcare Capital Markets Group represented Rendina on the portfolio recapitalization, advised Rendina and Artemis on establishing the joint venture, and secured the acquisition and development financing. The transaction was led by Newmark Executive Managing Director Ben Appel, Senior Managing Directors Jay Miele and Michael Greeley, Managing Director John Nero, and associates Ron Ott and Adam Goss of the firm’s National Healthcare Capital Markets Group.

“Like-minded investment philosophy, culture-fit, sophisticated understanding of the healthcare real estate market and appetite for portfolio growth were key criteria in our selection process. Artemis checked all the boxes we were looking for in a programmatic equity partner, said Richard Rendina, Chairman & CEO of Rendina.

“Artemis is excited to partner with a best-in-class sponsor like Rendina to grow a high quality portfolio of healthcare real estate assets. Rendina has the relationships and proven track record that we were looking for in a partner” stated Kevin Nishimura, Principal of Artemis Real Estate Partners.

“Rendina has seen tremendous success having developed for many of the Nation’s largest and most highly-regarded health systems, and dominant physician networks,” said Appel.

“This programmatic venture further supports Rendina’s growth, providing the firm additional resources to meet the evolving needs of healthcare providers across country,” added Miele.

“This joint venture will make Rendina even more competitive on development opportunities and will also provide us the acquisition platform and portfolio growth we have long-desired”, said Richard Rendina. “We believe the combination of Rendina’s expertise with Artemis’ capital will be a winning recipe not just for us, but for our healthcare provider clients as well. Rendina believes our health system relationships are our most valuable assets. Artemis understands this nuance to our business, and has shown us that they value relationship-based business and decision-making the same way Rendina does.”

 

Source: HREI

KKR Forms JV To Target $1B In Healthcare Real Estate

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Global investment firm KKR has formed a joint venture with Cornerstone Companies, a healthcare real estate investment, development and management firm, to acquire and develop a portfolio of healthcare properties across the United States.

KKR and Cornerstone have seeded the portfolio with the recapitalization of 25 healthcare properties owned by Cornerstone. With funding commitments provided by KKR’s real estate and credit funds and Cornerstone, the Joint Venture is positioned to acquire more than $1 billion in real estate assets over the next few years.

The portfolio recapitalized by KKR and Cornerstone includes 713,705 square feet of medical office buildings and ambulatory surgery centers located across 12 states, with in place long-term leases to a high quality group of healthcare systems, physician group practices and surgery center operators. Cornerstone and KKR will work together to grow the portfolio through acquisitions and net lease development opportunities, with a focus primarily on long-term leased single-tenant medical office buildings, ambulatory surgery centers and facility-based outpatient healthcare assets.

“KKR is one of the world’s largest investment firms with incredible connectivity across industries, including deep experience investing in the healthcare and real estate sectors,” said Tag Birge, President and CEO of Cornerstone. “This strategic partnership significantly increases our reach and capacity to deliver investment and development solutions for leading physician groups and health systems. We are very excited to work with a partner in KKR who shares our commitment to lasting client relationships and strong focus on portfolio construction and underwriting.”

“We are pleased to collaborate with the highly-regarded team of industry specialists at Cornerstone to invest in a scaled portfolio of healthcare properties,” said Peter Sundheim, Director at KKR. “The recapitalization of 25 well-situated seed assets creates a strong foundation for our Joint Venture.”

“We will contribute capabilities from across KKR’s real estate, credit and healthcare industry teams to support sourcing and underwriting of assets for the Joint Venture,” said Michelle Hour, Director at KKR. “As investors in the healthcare sector for more than two decades, our relationships and understanding of the needs of tenants will help us to provide attractive ownership for their mission-critical real estate.”

Additional financial terms of the Joint Venture and recapitalization transaction were not disclosed.

Newmark’s Healthcare Capital Markets Group advised Cornerstone and KKR on establishing the Joint Venture, represented Cornerstone on the portfolio recapitalization transaction, and provided advice to KKR on debt financing. CBRE’s Healthcare and Life Sciences Capital Markets Group provided buyside advisory services to KKR on the portfolio recapitalization transaction. Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

 

Source: Real Estate Weekly