Healthcare Real Estate Investment Strategies
We leverage our expertise in, and understanding of, the healthcare delivery industry, and our healthcare provider and real estate industry relationships, to invest in diverse types of healthcare real estate projects. Our investments are both as the sole-owner, or through joint venture relationships with third party, experienced real estate operators and developers. No matter what our role, we always adhere to our core values of integrity, transparency and honesty.
To date we have capitalized three closed-end Funds, the most recent of which, MedProperties Fund III, was launched in April 2018. All of our Funds are focused on investments offering “opportunity” level returns. We generate opportunity level investor returns by investing in the development of new healthcare properties, or acquiring properties with value-add potential. These properties can be repositioned to enhance operations, utilization and/or occupancy thus increasing project net operating income, with a resulting increase in holding period returns as well as an appreciation in value.
In addition to our closed-end opportunity funds, we invest through separately financed investment vehicles in stabilized, and near stabilized, healthcare properties offering core and core-plus returns.
Differentiating ourselves from many of our industry peer group, MedProperties’ investments include, but also extend beyond, traditional medical office buildings and outpatient facilities. We also invest in selective inpatient and outpatient, single tenant specialty facilities that we believe will generate superior, risk adjusted investment returns.
Healthcare Real Estate Fundamentals:
High Retention Rateover 80% of medical tenants renew their leases versus 60% renewal rates in traditional office buildings
Recession resistant asset classthat has a low correlation with macro-economic trends
High barriers to entryassociated with required healthcare provider underwriting expertise
Healthcare provider and real estate industry relationshipsimportant for success
Shifting delivery model to off-campus, out-patient facilitiesto lower costs and improve patient convenience thus driving the shift from hospital facilities to off-campus medical office and outpatient facilities.
Healthcare real estate is a recession resistant asset class that has a low correlation with macro-economic trends, as well as high barriers to entry associated with healthcare delivery underwriting expertise. Our exclusive focus on the healthcare real estate market provides direct exposure to, and a deep understanding of, the healthcare industry, which represents over 17% of U.S. GDP.