Privately held Cornerstone Cos. says it is doing just fine on its own
By John B. Mugford
Indianapolis-based Cornerstone Cos. has about 14 buildings in its portfolio, including the two-story, 32,890 square foot Carmel Penn Physicians Plaza in Carmel, Ind. (Photo courtesy of Cornerstone Cos. Inc.)
When capital-rich suitors came calling in recent years, many smaller healthcare real estate firms (HRE) succumbed to the temptation to partner or be acquired. But one regional HRE firm that has no plans to sell is Indianapolis-based Cornerstone Cos. Inc.
“We’ve been approached,” says J. Taggart “Tag” Birge, the company’s executive VP of development, “but we plan on maintaining our independence.”
Cornerstone has been building and managing a variety of healthcare facilities since 1985, when Robert N. “Bob” Whitacre, the president, started the company. Over the years, Cornerstone has often formed ownership partnerships with the physician-tenants in its buildings instead of other larger capital sources. Its array of projects have run the gamut from medical office buildings (MOBs) and ambulatory surgery centers (ASCs) to urgent care and imaging centers. Most of its projects have been built in the Midwest.
While the company’s strategy has been to build and hold its facilities, it does, on occasion, sell buildings, especially when demand and pricing are strong.
The firm recently took advantage of such a market, selling a package of five buildings, three of its own and two from other owners, for more than $30 million. The buyer of the 182,000 square foot portfolio, which was 94.1 percent leased at the time of the closing, was Newport Beach, Calif.-based Griffin-American Healthcare REIT II, an unlisted real estate investment trust (REIT). Cornerstone will continue to manage the buildings.
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