NEWS RELEASE — MAY 7, 2020
Ridgeline Capital Partners Acquires 10 Medical Office Buildings in Dallas-Fort Worth Metroplex with Help from Investors on CrowdStreet, Who Invest $5.3 Million of Equity in the Deal
- Oversubscribed: Investors on CrowdStreet Marketplace pledge $15 million for the offering as COVID crisis, stock market volatility continues
- Hot property: Net-leased buildings are 100% occupied; anchor is leading dialysis operator
Background on Deal
- Dallas-based Ridgeline Capital Partners has acquired a portfolio of 10 fully leased medical office buildings with a total of 99,072 square feet. The one and two-story properties are principally located in Tarrant County (Fort Worth) on commercial corridors with high traffic
- The $5.3 million of equity capital raised on CrowdStreet was from 79 investors on the platform.
- The primary tenant is U.S. Renal Care, the third-largest dialysis center operator in the U.S. The company is the sole tenant or the primary tenant at each of the 10 buildings. The other tenant is PPG Health, a multi-specialty healthcare organization with 30 locations in Dallas-Fort Worth.
- Dialysis patients require consistent treatment for their entire lives until they get a transplant, which could be up to 10 years. The U.S. 1972 Medicare ESRD program insures any American who needs dialysis, insulating the industry from economic cycles.
- Dialysis tenants are highly sticky with an estimated historic 99% tenant retention rate for the industry. This is due to the lengthy 18-month+ licensing process for new facilities, the significant upfront capital investment required, and the necessity for frequent visits from patients who are referred by local medical providers.
- The acquired properties are NNN (triple-net-leased) with tenants responsible for all expenses including taxes, insurance and maintenance.
In Sponsor’s Own Words
Founder and Managing Principal
Ridgeline Capital Partners
“This was Ridgeline’s third offering on the CrowdStreet Marketplace and, as I suspected, the deal was a good fit for CrowdStreet’s investment team and the individual investors who chose to participate. The portfolio is 100% net leased, nicely cash flowing, with tenants that provide medical services that are needed in any economic environment. Ridgeline plans to add value to the properties and, likely, sell the properties individually. It’s an understandable story to investors, who are looking for yield and stability in these tumultuous times.”
In CrowdStreet’s Own Words
Chief Investment Officer
“Despite the current market uncertainty, there was extremely high investor demand for this offering. We are seeing that our investors continue to have an appetite for investment opportunities like this one – a recession-resistant business plan, a sponsor with a strong track record, and deep expertise with the asset class.”
About Ridgeline Capital Partners
Ridgeline Capital Partners is a Dallas-based real estate investment firm focused on acquiring and operating healthcare real estate. The firm has extensive market knowledge, relationships and experience in acquisitions, capital markets and asset management that enable it to recognize, plan and execute on opportunities as they emerge. For more information, visit www.ridgelinecp.com.
CrowdStreet operates an award-winning online commercial real estate investment marketplace that gives investors access to institutional-quality offerings. Individuals have invested more than $1 billion in equity across 300+ deals on the CrowdStreet Marketplace, representing approximately $13.7 billion of total project capitalization. CrowdStreet technology allows sponsors to raise capital through online syndication and manage their investors, both on the Marketplace and with a SaaS solution. CrowdStreet is helping to create a community where individual investors and CRE firms can work together to build wealth through commercial real estate. For more information, visit www.crowdstreet.com.
Media contacts for more information:
Cary Brazeman and Victoria Ozols, 310-205-3590
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