Special Report: Equity providers tell BOMA their story

MOB CONFERENCE PANELISTS DISCUSS WHAT INVESTORS ARE LOOKING FOR NOW

Brian Mutchler of Harrison Street and P.J. Camp of SHP
Photo courtesy of BOMA International

By John Mugford

When it comes to doing healthcare real estate deals in the current market, everyone seems to utter the mantra that “cash is king.”

There’s also a notion that equity funding is available for the right deals, at the right price and with the right return. So, what are equity investors looking for in medical office deals? How much cash are they willing to provide, and exactly what kinds of returns are they seeking?

These were the topics and questions that dominated a panel discussion concerning equity financing at the 2009 Medical Office Buildings (MOBs) and Healthcare Facilities Conference, which was held in late June in Philadelphia. The event was presented by BOMA International and included a series of presentations and  panel discussions at the Philadelphia Marriott Downtown.

Doug Ray of Seavest and Dave Boitano of NHP
Photo courtesy of BOMA International

The discussion concerning equity was titled, “Deal Diagnosis: Equity Perspective.”

The panel discussion was moderated by Jeff Piehl, the director of Cushman & Wakefield’s Senior Housing and Healthcare Industry Group. The other panelists were:

• Philip J. “P.J.” Camp, managing director of Shattuck Hammond Partners;
• Clint Hinds, senior VP, Kennedy Associates Real Estate Counsel LP;
• Douglas “Doug” F. Ray, president and COO of Seavest Inc.;
• David Boitano, SVP and senior investment officer with Nationwide Health Properties Inc.; and
• Brian Mutchler, portfolio manager with Harrison Street.

The panelists were asked to share their perspectives on equity funding in the current marketplace, and to share some case studies.

Mr. Piehl received a laugh during his opening comments: “We’ve got a great lineup of speakers here who say capital is available from the equity standpoint. Although at dinner last night, when the bill came, there suddenly seemed to be no equity available.”