FOR IMMEDIATE RELEASE
INDIANAPOLIS, IN (May 30, 2017) – Cornerstone Companies, Inc. recently announced the acquisition of three health care real estate properties totaling 82,000 square feet in Indiana, Kentucky, and Colorado with an aggregate purchase price of $22.6 million. The properties were acquired by Cornerstone MOB Fund II, a private equity fund focused solely on medical real estate. Cornerstone is the fund’s general partner.
The acquisitions include; The Medical Centre at Lone Tree, located in Lone Tree, CO, the Muhlenberg Medical Center, located in Powderly, KY, and the IU Health Clinic, located in Mooresville, IN. All properties are 100-percent occupied, and the leases supporting the properties are all single-tenant, net leases with a weighted average expiration of 13 years.
“The providers at each of these properties deliver vital and top-tier health care services to their respective communities,” said Tag Birge, President of Cornerstone. “We are extremely excited to work with each of our new provider tenant-partners to ensure patient experiences continue to exceed expectations by ensuring the highest quality of health care real estate standards.”
The Medical Centre at Lone Tree is a 15,000 square foot ambulatory surgery center, imaging center and orthopedic clinic located in a fast-growing suburb of Denver, CO. The property is master leased by Spine One, a market-dominant orthopedic group that has been providing orthopedic and pain management services, and specializing in minimally invasive procedures for more than 25 years.
“The high quality of Spine One’s practice is mirrored by the quality of the medical center,” said Bob Whitacre, CEO of Cornerstone. “Spine One has generated a loyal referral base and dominant position in its market. The strategic location of the Medical Centre, just south of Cherry Creek and adjacent to the Tech Center, will allow our tenant to take advantage of surging demand created by the wonderful population growth in suburban Denver.”
The Muhlenberg Medical Center is a 56,000 square-foot, multi-specialty medical clinic located in Powderly, KY, located approximately one hour west of Louisville. The sole tenant is Baptist Health Madisonville, a $250-million subsidiary of Baptist Health, a $2-billion non-profit health care system headquartered in Louisville. Baptist’s physicians at the Muhlenberg Medical Center provide urgent care, primary care, obstetric and gynecological, pediatric, imaging, oncology, and psychiatric services.
“This medical center is a perfect example of how health care systems are moving to provide services out to where their patients work and live,” said Chad Dutmers, Managing Director of Cornerstone MOB Funds. “There are only about 45,000 residents of Muhlenberg County and this clinic serves more than 55,000 patients every year. Even though the hospital is only about twenty minutes north; for the residents of Muhlenberg and the neighboring counties, the Medical Center is where they go to receive nearly all of their treatment.”
The IU Health Clinic is a 12,000-square-foot, multi-specialty clinic located in Mooresville, IN. The three acquired properties will be joined by three of Cornerstone’s development projects: two medical office buildings totaling 25,000 square feet in rural Illinois and a 65,000 square-foot micro-hospital in suburban Texas. Together, the properties will make up the balance of the $55 million Cornerstone MOB Fund II. Construction on the Illinois projects is scheduled to start in mid-May and a September start is slated for the Texas project.
The six properties are all in line with Cornerstone’s focus on smaller medical office buildings and ambulatory surgery centers in suburban and rural markets.
“We have identified the growing need for critical access care in rural markets as well as the demand for health systems to generate off-campus delivery models,” Birge said. “We are a full-service, Midwest health care real estate firm that has been serving the physician and health care system market for more 30 years. Our core competencies are perfectly suited to compliment the needs of providers as they move to adopt the ‘hub and spoke’ model in order to retain and attract patient volume.”
Cornerstone is currently in the process of identifying and securing properties and projects for Fund III, which it expects to launch in the fourth quarter of this year.
About Cornerstone Companies Inc.
Cornerstone Companies, Inc. was established in 1985 as an integrated health care real estate development, leasing, property management, consulting, and investment company. Cornerstone is a privately owned company that has been involved in the health care real estate business for more than three decades. Cornerstone has partnered with physicians and hospitals to develop more than 60 medical facilities of all types and manages more than 4 million rentable square feet of medical office space in the Midwest with offices in Indianapolis, Louisville, Detroit and Columbus, Ohio. For more information visit www.CornerstoneCompaniesInc.com.
About Cornerstone MOB Funds
Launched in 2016, Cornerstone MOB Funds investment focus centers upon the acquisition and development of smaller (typically under 50,000 sf) medical office buildings and ambulatory surgery centers located in suburban and rural markets, where physician groups and health systems display proven market share dominance. Cornerstone’s ability to identify undervalued opportunities, along with a proven ability to understand physician/health system relationships, service areas, market positions and trends allows for our investors to generate above average market returns while undertaking below average market risk. Funds I and II include six health care properties with asset values totaling more than $61 million. Cornerstone expects to launch Fund III in the third quarter of 2017. For more information visit http://www.cornerstonecompaniesinc.com/cornerstone-mob-funds-6/
CONTACT: Tag Birge (317) 288-9001
Cornerstone Companies Inc.
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