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IRA Capital Launches $500M Fund Targeting Senior Housing, Healthcare Real Estate

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Private equity firm IRA Capital has launched a $500 million closed-end fund focused on the acquisition of medical properties and senior housing assets in the U.S.

IRA Healthcare Real Estate Fund will target the acquisition, development and financing of healthcare assets in high barrier-to-entry and supply-constrained markets. The California-based company projects the fund will have annualized net returns of 14% to 16%.

“We intend to acquire assets across the risk spectrum with a focus on core-plus and value-add opportunities,” IRA Capital co-founder Jay Gangwal said in a statement. “The diverse strategy will result in a balanced portfolio with a combination of yield and appreciation, while providing downside protection given the needs-based demand.”

The fund is open to both institutional clients and high net worth investors, including domestic and foreign endowments, pension funds, insurance companies and family offices. Southern California-based IRA’s principals are adding their own capital to the fund, according to the release.

The push to acquire healthcare and senior housing assets comes as the sector slowly recovers from pandemic-era financial challenges, inflationary pressures and decreased occupancy. Overall occupancy at senior housing facilities was around 78% in April, up 5% from pandemic lows but still down from the 87% seen before the global health crisis.

The healthcare sector was at a moment of “peak volatility” in February, according to Spencer Levy, global client strategist and senior economic advisor at CBRE. The near-term uncertainty is being exacerbated by high interest rates, but Levy said an expected peak of rates later this year will present opportunities for buyers as asset values are likely to increase in one to two years.

“The current capital markets environment is also presenting unique re-positioning opportunities that we expect will create significant value and generate outsized returns,” Gangwal said.

 

Source: Bisnow

Seavest And Nuveen Partner In $1 Billion Medical Office Transaction

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Seavest Healthcare Properties, LLC, the New York City and White Plains based healthcare real estate investment management firm, a division of the Seavest Investment Group, LLC, has concluded a transaction including a portfolio recapitalization in partnership with Nuveen Real Estate, one of the largest real estate managers globally.

The approximately $1 billion transaction closed in December 2021. Seavest recapitalized a portion of its portfolio of high-quality medical office buildings with Nuveen which has $1.2 trillion under management and $144 billion in real estate assets across the globe. The transaction extends Seavest’s and Nuveen’s existing relationship in the medical office building and outpatient medical facility sector.

“This transaction is a great addition to Nuveen’s healthcare real estate portfolio, and we are excited to expand our partnership with Seavest. Nuveen is focused on investing in strategically located, high quality medical facilities that are positioned to efficiently deliver quality care to the surrounding community. This portfolio accomplishes that,” said Andrew Pyke, Head of Healthcare Real Estate at Nuveen.

“The transaction is a testament to our ongoing success working together,” said John Winer, Senior Managing Director & CIO of Seavest.  “We have assembled a portfolio of highly strategic medical properties through our acquisition and development efforts. This enhancement to our partnership with Nuveen enables Seavest to advance our mission of building long term relationships with our health system and physician tenants.”

BlackBirch Capital acted as the exclusive financial advisor to Seavest Healthcare Properties in the transaction. Goodwin Proctor, LLC served as legal counsel.

 

Source: HREI