Dallas-based firm partners with Equity Inc. to acquire the 65,670 square foot, Class A Evendale Healthcare Center in suburban Cincinnati. Extensive renovations are planned.
CINCINNATI and DALLAS, July 18, 2013 – A recently-formed partnership of MedProperties Holdings LLC and Equity Inc. has acquired the Evendale Healthcare Center medical office building (MOB) in suburban Cincinnati.
MedProperties Holdings, a Dallas-based healthcare real estate private equity investment firm, and Equity, a Columbus, Ohio-based commercial real estate company with offices in Cincinnati, closed on the off-market transaction June 7.
The four-story, 65,670 square foot Evendale Healthcare Center was constructed in 1988 on 4.6 acres of land at 10475 Reading Rd. in Evendale, Ohio. The multi-tenant MOB is located between Interstate Highways 71 and 75, near the intersection of Reading Road and Glendale Milford Road.
This is MedProperties’ second transaction with Equity and its third investment for its recently launched second investment fund, MedProperties Investment Partners LP. The investment banker for the acquisition was Hunter Beebe from Healthcare Real Estate Capital.
“The Evendale Healthcare Center acquisition is part of our planned expanded strategic relationship with Equity,” MedProperties Managing Principal Darryl E. Freling says. “We are very happy with the success of our partnership to date with such a high-quality, experienced commercial real estate firm.”
The partners closed in March on their first joint venture, the acquisition of the five-story, 103,000 square foot Atrium Medical Center MOB in Middletown, Ohio. Equity is providing leasing and property management services for the Atrium Medical Center, and property management for the Evendale Healthcare Center. Leasing for Evendale will be provided by Republic Commercial Real Estate.
“The Evendale acquisition is a great fit with MedProperties’ portfolio investment strategy of targeting ground-up development and value-added acquisitions,” MedProperties Managing Principal Roman J. Kupchynsky II explains. “We especially like this asset because it is in a strong, growing market and has tremendous upside. We acquired the building for less than replacement cost, and look forward to making it an even better facility with some long-needed modernization, renovations and improvements.”
MedProperties and Equity have initiated a capital improvement plan that calls for an investment of at least $2.5 million to renovate the lobby and common areas, make exterior cosmetic improvements and modernize the building’s systems, including replacement of the heating, ventilating and air conditioning (HVAC) system. These improvements, in conjunction with a generous tenant improvement loan facility provided by GE Capital, has already – and will continue to – improve tenant relations and attract new prospective tenants.
In fact, since placing the building under contract, MedProperties and Equity have already boosted the building’s occupancy by about 20 percent, and negotiations are underway which should soon bring it to about 85 percent leased.
“Our continued partnership with MedProperties on the Evendale Healthcare Center MOB is another example of a strategic, value-added transaction that translates into a win-win for the citizens and physicians in this growing community,” says Hal Augur, chief financial officer for Equity.
The Evendale Healthcare Center MOB offers a diverse array of services and mix of physicians, with specialties including primary care, podiatry, gynecology, general surgery, dental specialists and an ambulatory surgery center (ASC). The MOB’s suites range in size from 987 to 14,739 square feet, and it offers ample parking and easy access for patients and physicians to and from I-75, I-71 and I-275.
Affiliated healthcare professionals who are interested in leasing space at the Evendale Healthcare Center are invited to contact Nick Barela with Republic Commercial Real Estate at 513-549-5440.
MedProperties Holdings LLC is a Dallas-based healthcare real estate private equity firm with offices in Greenville, S.C., that provides qualified developers and owner/operators with a consistent source of equity investment for the development of new, or value-added acquisitions of existing, healthcare-related real estate projects, including both multi-tenant medical office buildings and single-tenant, specialty facilities. MedProperties invests through its discretionary funds, MedProperties Capital Partners LP and MedProperties Investment Partners LP, and is dedicated solely to healthcare real estate.
Founded in 1989 by Steve Wathen, Equity, Inc. is a full-service commercial real estate firm headquartered in Columbus, Ohio, with offices in Cincinnati and Dayton, Ohio; Muncie, Ind.: San Antonio, Texas; and Tampa and Orlando, Fla. Equity develops and acquires cost-effective and flexible healthcare real estate in response to the changing space needs of our hospital and physician clients. Equity uses its hospital consulting, operational and construction expertise to identify and execute on ground-up and value-add opportunities. Hospitals appreciate Equity’s track record of bringing hospitals and physicians together around sound leasing and ownership solutions. Equity’s repeat business with hospital systems and physician groups speaks to the success of Equity’s approach and its enduring values.
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