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News Release: Caddis closes first investment fund to acquire medical office buildings

The firm expects to acquire 15 assets totaling about $167 million by year-end and plans to invest another $200 million to $300 million annually

Caddis just acquired12 medical office buildings (MOBs), including Gwinnet Medical Building in Lawrenceville, Ga., (top) and Spring Convenient Care Center in Spring, Texas (bottom). The firm plans to close on three additional MOBs by year-end. (Photos courtesy of Caddis)

DALLAS, Dec. 6, 2017 – In a major strategic shift, Caddis, has announced that it has closed on its first investment fund to acquire fixed-income core medical office building (MOB) assets across the country.

Officials at the national healthcare real estate firm, which is headquartered in Dallas, launched the fund Nov. 21 by consolidating 12 MOBs previously owned by affiliates of the firm for a total of $111 million. The firm is on target to close on three additional MOBS for $56 million into the fund by year-end.

“This new fund is part of Caddis’ overall strategy of focusing on long-term ownership and capitalizing on the many opportunities available in the strong medical office building market,” Caddis CEO Jason L. Signor explains. ”The fund will pursue a low leverage strategy targeting a 55% loan to value average. This new investment vehicle enables Caddis to purchase assets all-cash and to acquire debt at a later date.”

“We are adjusting to prevailing market conditions by creating an income structure versus a gain structure, enabling us to stay highly competitive thanks to a lower cost of capital.”

“Caddis has already obtained $130 million in committed equity for fund acquisitions, which we expect to double in the next 12-plus months,” says Lance M. Hardenburg, Caddis Executive Vice President Transactions and Partner. “Overall, our goal is to acquire $200 million to $300 million in MOB assets each year during the next five years.”

The initial acquisition includes the following MOBs:

Name                                                             Location        

Gwinnett Medical Building                             575 Professional Drive, Lawrenceville, Ga.

George Dieter Medical Plaza I                        1390 George Dieter Drive, El Paso, Texas

George Dieter Medical Plaza II                       1393 George Dieter Drive, El Paso, Texas

Phoenix Medical Center                                 1720 Phoenix Blvd., College Park, Ga.

Manatee Surgical Center                                601 Manatee Ave., Bradenton, Fla.

Hilton Head Outpatient Surgery Center         190 Pembroke Drive, Hilton Head, S.C.

Physicians Center at Bryan                             3201 University Drive East, Bryan, Texas

League City Convenient Care Center             2555 Gulf Freeway South, League City, Texas

Spring Convenient Care Center                      7474 N. Grand Parkway West, Spring, Texas

Katy Convenient Care Center                         22430 Grand Corner Drive, Katy, Texas

Greenville MOB                                              920 Woodruff Road, Greenville, S.C.

Plano Ortho MOB                                           5228 West Plano Parkway, Plano, Texas

About Caddis

Caddis Partners, LLC is a national real estate development, management and investment firm focused exclusively on healthcare real estate. The firm is comprised of experienced real estate professionals across various disciplines that provide clients with expertise in development, acquisition, financing, construction management, leasing, tenant representation, property management and accounting. Since its inception, Caddis has developed or acquired over three million square feet of medical assets valued in excess of $1 billion. In its annual Construction and Design Survey, Modern Healthcare magazine recognized Caddis as the 9th largest healthcare development company in the United States. For more information about Caddis, please visit www.Caddis.com.

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