Caddis recently acquired three medical office buildings (MOBs) totaling over 120,000 square feet and added them to its first investment fund.
One of the MOBs is in Georgia and two are in Texas, including the Prairie View Medical Plaza, which was originally developed and owned by Caddis. “With demand for medical office buildings at an all-time high, we felt this was an opportune time to acquire these excellent assets,” Caddis CEO and Partner Jason L. Signor says. “They house a wide variety of leading, well-known healthcare providers, they have high occupancy, and they’re in ideal locations near residential neighborhoods and retail venues. They’re also located in high-growth communities with excellent demographics and strong economies. They are a perfect fit for Caddis’ portfolio.”Caddis Acquisition Fund I initially closed last November while concurrently acquiring an initial portfolio of 12 MOBs for a total of $111 million. The fund is part of Caddis’ overall strategy of focusing on long-term ownership and capitalizing on the many opportunities available in the strong MOB market.
The three MOBs that were acquired include:
Brookhaven Medical Center
The Brookhaven Medical Center at 3925 Peachtree Road in Atlanta, opened in 2016. It’s located in the visible, sought-after Brookhaven/Buckhead area, which is surrounded by residential developments and shopping establishments. The 48,588 square foot, three-story MOB is 100 percent leased with Walgreens occupying the ground floor and Piedmont Healthcare tenanting the top two floors. The property was owned by a joint venture between G.H. Anderson & Co. and The Gipson Company.
Lorraine Ferguson, Chief Financial Officer of G.H. Anderson & Co., notes, “The transaction was mutually beneficial for all. Working with the professionals at Caddis was a great experience. The team delivered timely on all fronts and worked with our tenants to make the transaction as seamless as possible. The entire team exhibited experience and professionalism and it was a pleasure to work with them.”
Prairie View Medical Plaza
Caddis finished developing the 43,119 square foot Prairie View Medical Plaza, 4001 Long Prairie Road in Flower Mound, Texas, in 2012 and sold it in 2015. The facility, which Caddis has managed since it opened, has 12 suites and is 100 percent leased. The MOB houses a mix of leading healthcare tenants, including family practice, obstetrics/gynecology, dermatology, pediatrics, a laboratory/diagnostics, dental clinic, varicose vein clinic and a pharmacy. Tenants include Texas Health Resources and Cook Children’s.
Atascocita Medical Center
The 30,960 square foot, nine-suite Atascocita Medical Center at 17903 West Lake Houston Parkway in Humble, Texas opened in 2015 and is home to the Memorial Hermann Medical Group Pediatrics Atascocita, an urgent care clinic, and primary and specialty care physicians. The MOB is currently 94.4 percent occupied and is located at a major, highly visible intersection near other MOBs and retail establishments in the popular Lake Houston area.