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Dallas-Based Caddis Hires Sector Veteran To Grow The Company’s MOB Portfolio

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W. Todd Jensen has plenty of experience in the healthcare real estate (HRE) sector, and in his 25-year career with both public and private companies has been involved in more than 300 transactions topping $5 billion.

W. Todd Jensen

Dallas-based Caddis, which has been focused on healthcare facilities since its founding as the successor to a previous HRE firm in 2008, is looking to tap into Mr. Jensen’s experience to help grow its medical office building (MOB) portfolio, which currently comprises 42 assets with about 2 million square feet of space and $600 million in value The company recently hired him for a newly created position: executive VP, investments.

“We created this new position because we wanted to add more senior talent to help us grow our portfolio and expand our capital relationships,” says Lance M. Hardenburg, managing partner and CEO of the HRE firm with a national platform. “The company looks to grow the portfolio by making MOB acquisitions through our various medical office investment funds. However, we will continue to consider MOB development opportunities outside our investment funds, and where strategic or other considerations dictate our doing so, we also may pursue acquisitions opportunities on a separately syndicated basis. Mr. Jensen will lead Caddis’ acquisitions team while also providing strategic leadership to business development, capital relationships and development operations.”

As noted, Mr. Jensen’s experience is quite extensive, as prior to joining Caddis he was principal of Jensen Property Group, a real estate development and investment firm focused on healthcare, mixed-use and multifamily properties. Prior to that, Mr. Jensen was with New York-based Healthcare Trust Inc., a non-traded real estate investment trust (REIT), where he helped raise and invest nearly $5 billion in healthcare-related properties. He also spent more than 15 years with several HRE firms, including DASCO Companies, Lauth Property Group and Hammes Company.

Upon learning of Mr. Jensen’s new position, HREI reached out and he agreed to answer questions tossed his way.

HREI: Can you tell us why you decided to join Caddis? What excites you about the company and this opportunity?

W. Todd Jensen: I decided to join Caddis because they are a well-regarded firm with proven capabilities in the acquisition, capitalization, development and management of both medical office buildings and senior housing properties. It’s a great fit with my background and 25-year experience in healthcare real estate, where I have acquired and developed both medical office buildings and senior housing properties on a nationwide basis. I’m excited about the opportunity to help grow the company and the portfolio. That’s what I’ve done a lot in my career — help healthcare real estate businesses grow — and I’ve always thoroughly enjoyed the challenge. There is already a great platform that is poised for growth, and both Caddis and I think I can help.

 

Source: HREI

CIT Serves As Sole Lead Arranger On $48 Million Portfolio Financing Of Medical Office Buildings

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CIT Group Inc. announced that its Healthcare Finance business served as sole lead arranger of senior debt financing aggregating $48 million for the acquisition of a portfolio of medical office buildings.

The borrower is a joint venture between Kayne Anderson Real Estate and Remedy Medical Properties. The portfolio properties are located in four states and collectively total more than 189,000 square feet. They include:

• The Bon Secours Medical Office Building  in Chesapeake, Virginia

• The Locust Grove Medical Center in Locust Grove, Georgia

• The Spectrum Medical Office Building in Gilbert, Arizona

• The Arizona Spine and Joint Medical Office Building in Mesa, Arizona

• The Plano Medical Office Building in Plano, Texas

“These medical office buildings are modern facilities in attractive locations, easily accessed by healthcare patients and providers,” said Peter Westmeyer, CEO, Remedy Medical Properties. “We are pleased to add these properties to our portfolio and appreciate CIT’s agility and expertise in arranging financing.”

“Kayne Anderson Real Estate and Remedy Medical Properties are well-known as leading investors in medical office buildings and other real estate,” said William Douglass, managing director and group head for CIT’s Healthcare Finance business. “We are excited to have expanded our relationship with the Kayne Anderson/Remedy joint venture through providing this very important acquisition debt financing.”

CIT’s Healthcare Finance unit, part of the Commercial Finance division, provides comprehensive financing and banking solutions to middle market healthcare companies across the U.S. By using a client-focused and industry-centric model, the Healthcare Finance team can tailor its products and services to help clients meet their needs for growth capital.

 

Source: PRNewswire

Davis Launches MOB Investment Fund With Eight Acquisitions In Transactions Totaling $194 Million

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 Minneapolis-based Davis has kicked off its new medical real estate investment fund with a series of thirteen transactions totaling 536,362 square feet and $194 million in value.

Davis Medical Investors, LLC closed on the acquisitions of eight medical office buildings (MOBs) totaling 309,735 square feet during the first two weeks of December for a total of $112 million. Three of the properties were sold into the fund from existing Davis-affiliated partnerships and five were newly acquired from third parties.

“This is just the start of what we expect will be a fund of 20+ medical office buildings totaling up to $240 million,” says Mark Davis, Founder and Managing Partner of the national healthcare real estate development, property management, brokerage and investment firm. “We are looking for $125 million of medical building acquisitions in 2021, and we’re highly motivated, flexible and quick in closing on these assets.”

Stewart Davis, Davis Executive Vice President – Investments, said,  “These facilities fit our MOB acquisition criteria to a “T” in terms of deal size, type of property and tenancy, occupancy level, market, and location. In addition, as these acquisitions are growing our portfolio of assets, they are also growing our property management portfolio. These transactions are the culmination of many months of hard work. Despite some of the acquisitions being temporarily put-on hiatus because of COVID-19, we stayed in close contact with the sellers to ensure we successfully brought these deals to fruition.”

The eight properties are in Tennessee (three), Minnesota (three), Ohio and Connecticut. The Tennessee and Connecticut acquisitions are the firm’s first in those states. The portfolio includes all Class A and Class B+ off-campus assets that have an average building age of 10 years. They house a diverse mix of tenants with a stable overall occupancy of 99 percent and a weighted average lease term of more than eight years.

The properties are:

• Hartmann MOB, Tenn., 50,951 s.f., 93% leased
• Smyrna MOB, Tenn., 37,566 s.f., 96% leased
• Crossings MOB, Tenn., 38,852 s.f., 100% leased
• M Health-Fairview, Minn., 18,672 s.f., 100% leased
• Cornerstone MOB, Minn., 52,904 s.f., 100% leased
• Midwest ENT – Vadnais Heights, Minn., 12,000, 100% leased
• The Urology Group MOB, Ohio, 55,000 s.f., 100% leased
• EastPoint MOB, Conn., 43,790 s.f., 100% leased

The capital behind the new Davis Medical Investors Fund included long-time Davis partners as well as the participation of a strong Davis institutional partner. Capital One is providing the financing for the new Fund.    

“Capital One is pleased to expand our relationship with Davis on the transaction, which provides them with room to grow. We are excited to continue to work with this excellent borrower now and in the future,” says Erik Tellefson, Managing Director, Capital One.

“Davis is an existing Capital One borrower and it is phenomenal to close this credit facility with them. We have big plans with them from a lending standpoint,” says Natalie Sproull, Senior Director, Capital One.

About Davis

Davis, founded in 1986, is a national healthcare real estate firm that offers unparalleled expertise in healthcare real estate development, property management, brokerage, investment and consulting services to health systems, hospitals, individual medical groups, specialty practices and other healthcare organizations. Over the past five years, the company has developed 31 Class A medical buildings totaling $300-plus million in development costs and completed 43 investment transactions totaling more than $700 million. It has also negotiated more than 300 healthcare property leases totaling 1.5 million square feet during that time. For more information, visit www.davishre.com.

For more information about the firm’s MOB acquisition criteria, visit https://www.davishre.com/wp-content/uploads/2020/12/Investment_criteria_7.pdf.

 

Source: HREI