"Well-located medical office buildings have historically been characterized by stable tenancy and predictability of cash flows," says Steve Bolen, president of LaSalle Medical Office Fund. "As the demand for healthcare services is projected to rise rapidly over the next two decades with the aging US population, we believe that the medical office sector is uniquely positioned to deliver attractive, long-term returns for investors."

The first phase of funding, totaling $53 million, has closed, allowing the fund to purchase its first two properties. With 60% leverage, the fund will be able to buy $130 million in medical office properties. However, the fund anticipates additional phases of funding that will ultimately allow it to buy $375 million in property, likely to consist of 25 to 35 buildings.

Bolen and senior vice president Bill Maggard have a combined 25 years of experience acquiring and developing medical office facilities, says LaSalle Investment Management CEO Lynn Thurber.