The, 50,040 square foot West 101 Gateway MOB has class A finishes, an ideal location near major highways and a full-service medical campus, and excess land for future development
PHOENIX and DALLAS, June 13, 2018 – In a continuation of its belief in the strong Phoenix healthcare market, MedProperties Holdings LLC has acquired its fourth medical office building (MOB) in the metro area – the 50,040 square foot Class A West 101 Gateway MOB – with joint venture (JV) partner Cypress West Realty Partners LLC.
The West 101 Gateway acquisition, which closed May 22, was the sixth JV acquisition for MedProperties Holdings and Cypress West, a Rancho Santa Margarita, Calif.-based firm that acquires and manages healthcare properties. This was the 20th investment by MedProperties Investment Partners, MedProperties’ second discretionary fund, and will be one of the last investments by that fund since it is almost fully deployed.
Officials at MedProperties, a national healthcare real estate private equity firm headquartered in Dallas, say West 101 Gateway is an attractive investment offering a number of benefits.
“This is a well located, a Class A property that has been transitioning to 100% medical use over the past few years,” explains MedProperties Managing Principal Darryl Freling. “Our joint venture was able to negotiate value-add pricing for the property at significantly below replacement cost.
“In addition, Class A medical space such as this is in high demand in the area, and we’ve already had a number of positive discussions with current tenants regarding near-term expansions, as well as with prospective new high-quality tenants.”
He added, “Additional upside results from the property’s high parking ratio of nine spaces for every 1,000 square feet, far exceeding the market ratio of five spaces per 1,000 square feet. The excess parking provides an opportunity for the development of a second medical facility on the site, and thus additional, accretive investment returns.”
MedProperties Managing Principal Roman Kupchynsky said his firm is pleased to acquire another medical facility in Phoenix and they believe the location, at 9520 West Palm Lane in west Phoenix, is ideal.
“The property is highly visible and accessible near two major freeways, the Loop 101 and Interstate 10,” says Mr. Kupchynsky. “It’s also located in a vibrant healthcare corridor near Banner Estrella Medical Center, a full-service medical campus with a 317-bed hospital. Plus the facility features Class A finishes and design, large flexible floor plans and other amenities that we expect will give it a competitive leasing advantage over other nearby medical office buildings.”
Mr. Kupchynsky said he and his colleagues at MedProperties are also pleased to join forces again with Cypress West.
“We have worked with the Cypress team for a number of years, and we’ve always been impressed with their intelligence, real estate expertise and market knowledge,” says Mr. Kupchynsky. The combination of this successful partnership and attractive acquisition are truly a win-win for everyone.”
Cypress West Partner’s CEO, Chris Cumella, said he is excited about completing another acquisitioin with MedProperties.
“This building is right down the middle of our fairway. West 101 Gateway is a best-in-class asset in the healthcare corridor near Banner Estrella Medical Center. We look forward to the continued success of this partnership.”
CIT Bank arranged debt financing for the West 101 Gateway MOB acquisition.
MedProperties is a Dallas, Texas based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities throughout the U.S. MedProperties invests through its discretionary funds, and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.
About Cypress West Partners
Cypress West Partners LLC was formed through strategic affiliations with institutional investors, high-net worth individuals and family offices with the purpose to acquire, develop and manage healthcare properties across the Western United States. At Cypress West, the team is focused on understanding and implementing on all aspects of what makes a high-performing asset.
Cypress West is highly experienced at working across the healthcare spectrum, from institutional owners to hospitals and individual doctors. The strength and legacy of its business model is in Cypress West’s method for successfully acquiring the right medical real estate assets backed by solid data analytics, followed by a strategic leasing and management plan to increase value at the property and investment levels. To learn more about Cypress West Partners, please visit cypresswestpartners.com.
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