EVENDALE, Ohio – A recently formed and expanding partnership of Dallas-based MedProperties Holdings LLC and Columbus, Ohio-based Equity Inc. has acquired a 65,670 square foot MOB in Evendale, a suburb of Cincinnati.
The Evendale Healthcare Center has four stories and was completed in 1988. (Photo courtesy of MedProperties Holdings)
The Evendale Healthcare Center has four stories, was completed in 1988 and is on 4.6 acres at 10475 Reading Rd., between U.S. interstates 71 and 75. The acquisition price has not been revealed; the seller, according to RCA, was Cincinnati-based development firm Al Neyer Inc.
“The Evendale acquisition is a great fit with MedProperties’ portfolio investment strategy of targeting ground-up development and value-added acquisitions,” MedProperties Managing Principal Roman J. Kupchynsky II said in a news release.
“We especially like this asset because it is in a strong, growing market and has tremendous upside. We acquired the building for less than replacement cost, and look forward to making it an even better facility with some long-needed modernization, renovations and improvements.” MedProperties and Equity have committed to a capital improvement plan of at least $2.5 million.
For MedProperties, the acquisition is its second in a partnership with Equity and the third in its newest investment fund, MedProperties Investment Partners LP.
“The Evendale Healthcare Center acquisition is part of our planned expanded strategic relationship with Equity,” said Darryl E. Freling, managing principal of MedProperties. “We are very happy with the success of our partnership to date with such a high-quality, experienced commercial real estate firm.”
The partners in March closed on their first joint venture acquisition: the five-story, 103,000 square foot Atrium Medical Center MOB in Middletown, Ohio. Equity is providing leasing and property management services for that facility, and it will provide property management for the Evendale Healthcare Center as well. Cincinnati-based Republic Commercial Real Estate is providing leasing service for the Evendale facility.
Since placing the building under contract, MedProperties and Equity have boosted its occupancy by about 20 percent, and negotiations are underway that could bring the facility to about 85 percent leased.
E. Hunter Beebe, principal of New York-based Healthcare Real Estate Capital (HRE Cap), served as the investment banker on the transaction.
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