Strength of Core Tenants is Key in Healthcare Buy
Nazareth Enterprises Inc. recently completed the $16.7 million acquisition of the Sacramento Heart Medical Building, a 47,500-square-foot class-A medical building located at 500 University Ave.
SACRAMENTO—Nazareth Enterprises Inc. recently completed the $16.7 million acquisition of the Sacramento Heart Medical Building, a 47,500-square-foot class-A medical building located at 500 University Ave. The two-story building on 3.34 acres was developed in 1996, followed by a radiology and imaging annex that was added in 2006, and an ambulatory surgical suite in 2017.
The firm was founded by Mounir Kardosh, president and CEO of the Nazareth family of companies based in San Mateo, CA.
“We are excited about the tenant mix which includes Sacramento Heart, UC Davis Health and a mix of other doctors in practices with strong ties to local hospitals, curated to maximize treatment modalities for patients at the property,” says Kardosh.
Nazareth was represented by Laef Barnes of Avison Young and Abe Matar of Landmark Real Estate Services. The Sacramento-based private investor/seller was represented by Michael Stassi and Daniel J. Baker of JLL. Nazareth’s financing was once again assisted by Matt Hollander of BluePoint Commercial Mortgage along with Ryan Moore of Merchants Bank.
“The key for us is the strength of the core tenants,” Kardosh tells GlobeSt.com. “The Sacramento Heart and Vascular Medical Associates are a thriving practice in an era when many cardiovascular practices are challenged. Their principals’ stewardship of the property and the tenant mix have led to a building teeming with interdisciplinary yet complementary practices that fully service their patients.”
Even though healthcare is faced with regulatory uncertainty and pressure to provide quality, lower cost care, the industry is an undeniable economic force. Healthcare has surpassed retail and manufacturing to become the nation’s largest employer, now over 13% of the workforce, according to a report by JLL. It is also one of the fastest growing sectors of the US economy, with healthcare spending expected to grow by nearly $2 trillion in the next decade. These forces, plus the aging population and transformative technology means that the healthcare industry’s real estate needs are more important than ever, says JLL.