NexCore's senior managing director Peter Kloepfer tells GlobeSt.com that about half of the investment activity will involve assets NexCore has ownership in and will develop on a go-forward basis. The other half will be assets acquired from independent third parties. Leverage will typically be 65% and there will be no geographic boundaries to the JV's activities, he says.In explaining the venture, Kloepfer says the medical real estate market is fragmented and inefficient and is in the process of consolidating. With Rreef as the capital partner, NexCore wants to solidify its position as a national provider of medical real estate, he says. "We feel we have the most competitive capital source in the nation," he says.

In explaining Rreef's interest in the sector, the company's director of research Asieh Mansour says the aging of the Baby Boomers, increased chronic illness among the growing senior citizen population and increasing life expectancy suggests US citizens will be consuming more healthcare and consuming it for a longer period of time. "A real estate strategy that takes advantage of these powerful demographic trends should be very successful," he says.

The partnership's inaugural transaction was to recapitalize the Dry Creek Medical Campus, an 11-acre ambulatory care center in Englewood, CO, a Denver suburb. The transaction, which valued the asset at $24.8 million, involved NexCore selling an undisclosed interest in the asset to Rreef. The transaction was completed at the end of the year.