Posts

Dallas Investors Buy The Las Colinas Medical Building In Irving, Texas

/in , /by

Dallas-based Ridgeline Capital Partners has purchased a 70,000-square-foot medical office building in Irving.

The three-story building is at 6121 N. State Highway 161 and was acquired in a joint venture with Harrison Street, a Chicago-based investor. The building was constructed in 2019 to house primary care physicians.

The property is near Medical City Las Colinas hospital and is more than 80% leased to tenants including UT Southwestern Medical Center. An ambulatory surgery center will open in the building early next year.

“This is a medical campus with best-in-class tenants that provide a wide range of services for patients in one convenient location,” Jeff Axley, managing principal for Ridgeline, said in a statement. “The building was attractive to us due to its triple A credit-rated anchor tenant UT Southwestern Medical Center, Ambulatory Surgery Center and strategic location adjacent to Healthcare Associates of Texas, which provide additional primary care patient referrals to our tenants.”

Ridgeline Capital Partners acquires and operates medical office buildings, health care real estate and behavioral health facilities in Texas and the Southeast.

 

Source: The Dallas Morning News

Ridgeline Capital Partners Acquires 10 Medical Office Buildings In Dallas-Fort Worth Metroplex

/in /by

Dallas-based Ridgeline Capital Partners, an investment firm focused on acquiring and operating healthcare real estate, has acquired a portfolio of 10 fully leased medical office buildings with a total of 99,072 square feet.

The one and two-story properties are principally located in Tarrant County (Fort Worth) on commercial corridors with high traffic.

The $5.3 million of equity capital raised on CrowdStreet was from 79 investors on the platform. CrowdStreet operates an online commercial real estate investment marketplace that gives investors access to institutional-quality offerings.

The primary tenant is U.S. Renal Care, the third-largest dialysis center operator in the U.S. The company is the sole tenant or the primary tenant at each of the 10 buildings. The other tenant is PPG Health, a multi-specialty healthcare organization with 30 locations in Dallas-Fort Worth.

Dialysis patients require consistent treatment for their entire lives until they get a transplant, which could be up to 10 years. The U.S. 1972 Medicare ESRD program insures any American who needs dialysis, insulating the industry from economic cycles. Dialysis tenants are highly sticky with an estimated historic 99% tenant retention rate for the industry. This is due to the lengthy 18-month+ licensing process for new facilities, the significant upfront capital investment required, and the necessity for frequent visits from patients who are referred by local medical providers.

The acquired properties are NNN (triple-net-leased) with tenants responsible for all expenses including taxes, insurance and maintenance.

In Sponsor’s Own Words

Jeffrey Axleym Founder and Managing Principal, Ridgeline Capital Partners, Dallas, Texas

“This was Ridgeline’s third offering on the CrowdStreet Marketplace and, as I suspected, the deal was a good fit for CrowdStreet’s investment team and the individual investors who chose to participate. The portfolio is 100% net leased, nicely cash flowing, with tenants that provide medical services that are needed in any economic environment. Ridgeline plans to add value to the properties and, likely, sell the properties individually. It’s an understandable story to investors, who are looking for yield and stability in these tumultuous times.”

In CrowdStreet’s Own Words

Ian Formigle, Chief Investment Officer, CrowdStreet, Portland, Oregon

“Despite the current market uncertainty, there was extremely high investor demand for this offering. We are seeing that our investors continue to have an appetite for investment opportunities like this one – a recession-resistant business plan, a sponsor with a strong track record, and deep expertise with the asset class.” 

 

Source: HREI

Healthcare Professionals, Investors Key In On Dallas-Fort Worth

/in , , /by

Dentists, optometrists, physicians and even veterinarians are opening practices in Dallas-Fort Worth at a rapid rate.

Among metropolitan areas, Dallas-Fort Worth-Arlington experienced the largest numeric growth not only from 2017 to 2018 (131,767) but also from 2010 to 2018 (1.11 million).

Dallas and Fort Worth are now the ninth and 13th most populous US cities. The 2018 total populations were 1.345 million and 895,008 respectively.

Migration, both domestic and international, as well as natural influx contributed to the growth in each of these areas, with natural increases serving as the largest source of population growth in Dallas and domestic migration serving as the largest source in Phoenix, according to the US Census Bureau.

Tarrant County was ranked eighth from 2017 to 2018 (27,463) and sixth from 2010 to 2018 (274,276) among cities including Arlington, Fort Worth and Grand Prairie. Fort Worth was ranked third among the top 15 cities with populations of 50,000 or more that had the largest numeric increase from 2017 to 2018 (19,552), according to Xite Realty.

Collin County experienced the fourth largest numeric growth from 2017 to 2018 (33,753) nationwide. Cities in Collin County include Allen, Carrollton, Frisco, McKinney, Plano and Richardson. Frisco and McKinney were ranked 10th and 13th respectively among the top 15 cities with populations of 50,000 or more that had the largest numeric increase from 2017 to 2018, says Xite.

With healthcare demand creating added opportunities, investors are clamoring to get in on the action. And late last month, HR Acquisition of San Antonio Ltd. did just that with its purchase of Magnolia Medical Tower in Fort Worth for an undisclosed price.

Private real estate investment firm Ridgeline Capital Partners purchased the 89,990-square-foot medical office building located in the Fort Worth Medical District three years ago. Ridgeline renovated the lobby and common areas in 2017, helping to increase its occupancy and rental rates.

The six-story building was built in 1985 and is located adjacent to the Baylor All Saints Medical Center, with access to Cook Children’s Medical Center, Texas Health Harris Methodist Hospital Fort Worth and Plaza Medical Center of Fort Worth. The building has a well-rounded tenant mix including primary care, oncology, orthopedics, cardiology, urology, OB/GYN, neurology and pain management.

“The building has no use restrictions while offering a lower rent than other on-campus MOBs in the area,” Jeff Axley, Ridgeline’s managing principal, tells GlobeSt.com.

JLL’s Healthcare Capital Markets Group brokered the sale on behalf of Ridgeline.

“This property is very well-situated in the Fort Worth Medical District, and we hope the new owners continue to enjoy the success we have experienced,” Axley says.

 

Source: GlobeSt.