Search
 

Prime Property Closes $25M Healthcare Real Estate Fund

CHICAGO—The new group plans to invest a total of $100 million in healthcare real estate by the end of 2016 through acquisitions across the US.

By Brian J. Rogal | brianjrogal | | Updated on March 01, 2016

 

EliteCareLewisville,TX Elite Care– Lewisville, TX: a healthcare facility fully leased to Greater Houston Emergency Physicians for an initial 12-year term.
CHICAGO— Prime Property Investors, Ltd. yesterday announced it was launching Prime Healthcare Investors , a group of private equity funds specializing in the acquisition of triple-net-leased healthcare real estate. The group’s initial $25 million fund, Prime Healthcare Investors Fund I LLC, which closed in late 2015, recently acquired three healthcare properties in the Dallas and Denver areas for $25 million.   Prime Healthcare Investors plans to invest a total of $100 million in healthcare real estate by the end of 2016 through additional acquisitions across the US. “There are no specific regions or cites we are targeting,” Rachel Eisenberg, director of marketing for the Northbrook, IL-based Prime, tells GlobeSt.com. “Nationally we are targeting larger MSA’s. We feel where there is the most population growth there will be the highest demand. In addition, it gives us flexibility for alternative tenants in the space.” “Our country’s aging population – some 10,000 baby boomers turn 65 each day – as well as increased access to health insurance are generating unprecedented demand for healthcare services, and we’re seeing that reflected in real estate markets across the country,” adds Barbara J. Gaffen , co-chief executive officer of PPI. “As the shift toward outpatient care continues, we see tremendous potential in neighborhood-level as well as on hospital campus facilities that offer a full spectrum of services much closer to the patient,” says Michael H. Zaransky , PPI’s other co-chief executive officer. The company will target general acute care facilities including physician offices, urgent care clinics, ambulatory surgical centers, specialty hospitals and other medical office buildings. The fund’s three initial investments are the following properties: First Choice Emergency Room – Wylie, TX: the newly built emergency room fully occupied by Adeptus Health Inc. on a 20-year triple net lease, with seven five-year renewal options. Elite Care– Lewisville, TX: a healthcare facility fully leased to Greater Houston Emergency Physicians for an initial 12-year term, with three five-year extension options. UCHealth ER – Littleton, CO – the recently completed freestanding building fully leased to the University of Colorado Health on a 20-year triple net lease with seven 5-year renewal options. “We are excited to introduce healthcare real estate properties within our investment Funds and we see great potential in building a portfolio in this asset class,” says Gaffen.   “Growing demand for medical use real estate and our ability to obtain low cost debt creates a niche opportunity to build a stable, cash-flowing health care real estate portfolio for our investors,” adds Zaransky.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.