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Companies & People: Pandemic not stopping IRA Capital

Principal Amer F. Kasm discusses the firm’s activities, prospects in our ‘5 Questions’ format

By John B. Mugford

IRA Capital’s most recent acquisition was the fully occupied, 62,969 square foot Magan Medical Clinic at 420 Rowland St. in Covina, Calif., in Los Angeles County. The price was $39.85 million, or $533 per square foot (PSF). (Photo courtesy of IRA Capital)

Private equity firm IRA Capital, which is based in Irvine, Calif., continues to be one of the most active medical office building (MOB) investors during the COVID-19 pandemic

The firm, which has a heavy focus on MOBs and invests for its own account as well as on behalf of pension funds, institutions, family offices and individuals, has made six medical office acquisitions in the past month-and-a-half for a total of $150 million.

It most recent purchase was made on May 20, when IRA acquired the fully occupied, 62,969 square foot Magan Medical Clinic at 420 Rowland St. in Covina, Calif., in Los Angeles County. The price was $39.85 million, or $533 per square foot (PSF).

According to information from HRE research and data firm Revista, the seller was of Denver-based DaVita Inc. (NYSE: DVA), which was the previous tenant in the building. However, with the 100-year old, 50-physician, multi-specialty Magan Medical Clinic, which was founded in 1919 and which occupies the entire building, becoming part of Eden Prairie, Minn.-based Optum Health (part of UnitedHealth Group (NYSE: UNH) last year, the building became available.

In an exclusive interview, Amer F. Kasm, a cofounder and one of five principals of IRA Capital, tells HREI that the firm competed for the Magan Medical Clinic MOB in a “limited process.”

The clinic building, according to Mr. Kasm, who is responsible for directing IRA’s investment strategy and overseeing the firm’s asset and portfolio management processes, “checked a lot of boxes for us.” Those include, he notes: “Strong tenant with long operating history, great location, long-term lease, diverse mix of services being offered, and the fact that significant dollars were recently invested into the facility.”

As noted, IRA Capital has been a very active MOB investor of late, including during the COVID-19 pandemic. It’s overall portfolio now totals 2 million square feet and a value of about $750 million worth.

It plans to continue to acquire assets in the remainder of 2020.

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