Prime Property Investors closes $25 mln healthcare real estate fund

Northbrook, Illinois-based Prime Property Investors Ltd launched Prime Healthcare Investors, a group of private equity funds specializing in the acquisition of triple-net-leased healthcare real estate across the U.S. The group closed its initial fund at $25 million in late 2015 and recently acquired three healthcare properties in the Dallas and Denver areas for $25 million.  Prime Healthcare plans to invest a total of $100 million in healthcare real estate by the end of 2016 through additional acquisitions.

PRESS RELEASE

CHICAGO, Feb. 29, 2016 /PRNewswire/ — Northbrook, Illinois-based Prime Property Investors, Ltd. (PPI) today announced the launch of Prime Healthcare Investors, a group of private equity funds specializing in the acquisition of triple-net-leased healthcare real estate across the U.S. The group’s initial $25 million fund, Prime Healthcare Investors Fund I LLC, which closed in late 2015, recently acquired three healthcare properties in the Dallas and Denver areas for $25 million.  Prime Healthcare Investors plans to invest a total of $100 million in healthcare real estate by the end of 2016 through additional acquisitions.

“Our country’s aging population – some 10,000 baby boomers turn 65 each day – as well as increased access to health insurance are generating unprecedented demand for healthcare services, and we’re seeing that reflected in real estate markets across the country,” said Barbara J. Gaffen, co-CEO of Prime Property Investors. “As the shift toward outpatient care continues, we see tremendous potential in neighborhood-level as well as on Hospital campus facilities that offer a full spectrum of services much closer to the patient,” added Michael H. Zaransky co-CEO of PPI.

Prime Healthcare Investors is targeting general acute care facilities including physician offices, urgent care clinics, ambulatory surgical centers, specialty hospitals and other medical office buildings (MOB’s).

The fund’s three initial investments consist of the following properties:

• First Choice Emergency Room – Wylie, Texas: the newly built emergency room fully occupied by Adeptus Health Inc. on a 20-year triple net lease, with seven five-year renewal options.
• Elite Care– Lewisville, Texas: a healthcare facility fully leased to Greater Houston Emergency Physicians for an initial 12-year term, with three five-year extension options.
• UCHealth ER – Littleton, Colorado – the recently completed freestanding building fully leased to the University of Colorado Health (UCHealth) on a 20 year triple net lease with seven 5-year renewal options.

“We are excited to introduce healthcare real estate properties within our investment Funds and we see great potential in building a portfolio in this asset class,” said Gaffen.  “Growing demand for medical use real estate and our ability to obtain low cost debt creates a niche opportunity to build a stable, cash-flowing health care real estate portfolio for our investors,” added Zaransky.

About Prime Property Investors
Prime Property Investors (PPI) is a real estate investment firm with a national portfolio of Class A suburban garden-style apartment communities and healthcare-medical office properties as well as student housing properties on major college campuses. Barbara J. Gaffen and Michael H. Zaransky, co-CEOs of PPI, founded the company in 1993, and today oversee $230 million in properties. For more information on Prime Property Investors, visit www.primepropertyinvestors.com.