Invesco and Caddis Form JV for MOB Buys
The plan is to combine Invesco’s commitment with the Caddis Acquisition Fund I to acquire up to $1 billion in US core and core-plus healthcare real estate assets during the next three to five years.
DALLAS—Invesco Real Estate, a global real estate investment manager, and Caddis Partners LLC, a national healthcare real estate firm based in Dallas, have formed a strategic joint venture to take advantage of the strong medical office building market. Invesco made a significant equity commitment for investment in future MOB acquisitions through a joint venture formed with the Caddis Acquisition Fund I that is sponsored by Caddis.
The plan is to combine Invesco’s commitment with equity provided by Caddis Acquisition Fund I to allow the joint venture to acquire up to $1 billion in core and core-plus healthcare real estate assets across the country during the next three to five years. Invesco is investing on behalf of its direct investment program.
At the time of Caddis Acquisition Fund I’s first closing last November, the fund made a simultaneous contribution to the joint venture mandate to enable the partnership’s acquisition of a $111 million 12-asset portfolio across US sunbelt markets. Subsequent to closing on the initial portfolio, the partnership acquired three additional MOBs for $56 million, thus totaling 15 medical real estate assets located in Texas, Georgia, South Carolina and Florida. Caddis officials say the joint venture is part of the company’s overall strategy of focusing on long-term ownership and capitalizing on the many opportunities available in the attractive MOB market.
“The newly formed JV with Invesco is a momentous occasion for us at Caddis,” explains Caddis CEO Jason L. Signor. “It marks the changing of our business model from that of being transitional owners to perpetual owners. This strategic shift was the result of our recognizing the recession-resistant nature of MOBs and the importance of fostering long-term relationships with healthcare providers.”
Daniel Kubiak, senior director of portfolio management at Invesco Real Estate, says that the off-market acquisition provides an immediate diversified medical office portfolio with 15 assets in key markets.
“The assets provide a good mix of single- and multi-tenant options, and fit well within our existing diversified income-focused strategy,” says Kubiak. “We are looking forward to working with Caddis to add value within our existing portfolio of assets, as well as growing the portfolio over time.”
Lance Hardenburg, Caddis executive vice president transactions and partner, noted that Caddis management wants to make it easy for sellers to move quickly from an agreement on terms to the closing of the sale.
“The Invesco-Caddis alliance provides us with some of the lowest-cost capital in the industry, which in turn allows us to fulfill our strategy to quickly and painlessly acquire class-A properties across the nation,” he says.
Invesco Real Estate has $66.4 billion in real estate assets under management, 471 employees and 21 regional offices across the United States, Europe and Asia, as of the end of last year.
Caddis Partners LLC is a national real estate development, management and investment firm focused exclusively on healthcare real estate. Since its inception, Caddis has developed or acquired more than 3 million square feet of medical assets valued in excess of $1 billion.