The firm expects to acquire 15 assets totaling about $167 million by year-end and plans to invest another $200 million to $300 million annually

Gwinnet Medical Building

DALLAS, Dec. 6, 2017 – In a major strategic shift, Caddis, has announced that it has closed on its first investment fund to acquire fixed-income core medical office building (MOB) assets across the country.

Officials at the national healthcare real estate firm, which is headquartered in Dallas, launched the fund Nov. 21 by consolidating 12 MOBs previously owned by affiliates of the firm for a total of $111 million. The firm is on target to close on three additional MOBs for $56 million into the fund by year-end.

“This new fund is part of Caddis’ overall strategy of focusing on long-term ownership and capitalizing on the many opportunities available in the strong medical office building market,” Caddis CEO Jason L. Signor explains.

Caddis just acquired 12 medical office buildings (MOBs), including Gwinnet Medical Building in Lawrenceville, Ga., (top) and Spring Convenient Care Center in Spring, Texas (bottom). The firm plans to close on three additional MOBs by year-end.

”The fund will pursue a low leverage strategy targeting a 55% loan to value average. This new investment vehicle enables Caddis to purchase assets all-cash and to acquire debt at a later date.”

“We are adjusting to prevailing market conditions by creating an income structure versus a gain structure, enabling us to stay highly competitive thanks to a lower cost of capital.”

“Caddis has already obtained $130 million in committed equity for fund acquisitions, which we expect to double in the next 12-plus months,” says Lance M. Hardenburg, Caddis Executive Vice President Transactions and Partner. “Overall, our goal is to acquire $200 million to $300 million in MOB assets each year during the next five years.”

The initial acquisition includes the following MOBs:

Name Location
Gwinnett Medical Building 575 Professional Drive, Lawrenceville, Ga.
George Dieter Medical Plaza I 1390 George Dieter Drive, El Paso, Texas
George Dieter Medical Plaza II 1393 George Dieter Drive, El Paso, Texas
Phoenix Medical Center 1720 Phoenix Blvd., College Park, Ga.
Manatee Surgical Center 601 Manatee Ave., Bradenton, Fla.
Hilton Head Outpatient Surgery Center 190 Pembroke Drive, Hilton Head, S.C.
Physicians Center at Bryan 3201 University Drive East, Bryan, Texas
League City Convenient Care Center 2555 Gulf Freeway South, League City, Texas
Spring Convenient Care Center 7474 N. Grand Parkway West, Spring, Texas
Katy Convenient Care Center 22430 Grand Corner Drive, Katy, Texas
Greenville MOB 920 Woodruff Road, Greenville, S.C.
Plano Ortho MOB 5228 West Plano Parkway, Plano, Texas