Sendero, Angelo Gordon Make First Acquisition Under New Healthcare JV
The two companies plan to invest $300 million in outpatient healthcare real estate over the next two years.
Instead of being performed in an inpatient facility, more procedures and services have shifted to outpatient in the last decade, in part thanks to new technology and also because patients don’t have to stay overnight. As a result, buildings that are properly outfitted and well located, including accessible to public transportation and roadways, are prime beneficiaries and targets to be acquired.
Sendero Capital and Angelo Gordon have closed on their first acquisition under a programmatic JV they recently formed to acquire outpatient assets. It is a 53,120-square-foot medical office building in Hamden, Conn., located in suburban New Haven and near Yale University, which has a School of Medicine and affiliation with Yale-New Haven Hospital. JLL brokered the deal.
The two companies plan to invest $300 million in other outpatient healthcare real estate over the next two years with a focus on value-add and core-plus assets in other Northeast locations. Historically this niche has had high barriers to entry due to its concentration of healthcare businesses and strong growth.
The Whitney Avenue building offered other benefits that appealed. It is 88% occupied with a diverse tenant roster and anchored by Hartford Healthcare and Yale New Haven Health. It has several physician practices on site with a range of specialists appealing to many demographics: internal medicine, cardiology, dermatology, endocrinology, podiatry and physical therapy. It is convenient to Route 15 and Interstate 91 for access throughout Southern Connecticut and has a transit stop in front of the building. Moreover, the entire area is dedicated to healthcare with more than 3.2 million square feet of acute-care, rehabilitation and cancer hospitals nearby.
Brannan Knott, Managing Director at JLL Capital Markets, and Anthony Sardo, Director, led the JLL Capital team.
JLL also had reported in its 2023 Healthcare Investor Survey & Trends Outlook that medical office building fundamentals “remain strong, with resilient occupancy and steady rent and NOI growth with two-thirds of investors surveyed indicated MOBs (medical office buildings) present a strong investment opportunity—followed by ambulatory surgery centers—highlighting a shift in demand for outpatient care versus inpatient facilities.”