There's usually nothing unusual about building a portfolio of net lease properties in a given industry. But it is out of the ordinary when the properties are almost all veterinary facilities.

Terravet Real Estate has been in exactly that space since 2012 and raised its first fund in 2018. "I'm buying and developing veterinary hospital facilities," chief executive and founder Daniel Eisenstadt told GlobeSt.com. They do 10% of their business in ophthalmological ambulatory surgery real estate, but 90% comes from vet tenants.

Eisenstadt was a co-founder of a veterinary operating group called Community Veterinary Partners which owned a series of vet practices. He saw other groups that similarly owned veterinary practices but with a common trait. "A lot of institutional money was investing in the op-co side, but no one was investing on the prop-co side," he says. Money focused on the practices but not so much on the real property side. The vets continued to own the property.