FOR IMMEDIATE RELEASE
The Chicago-based private real estate investment firm recently bolstered its healthcare real estate holdings with two 20,000-square-foot medical facilities, re-establishing its presence in the Texas market
MIDLAND and SAN ANTONIO, Texas, and CHICAGO, July 29, 2020 – Stage Equity Partners (SEP), a Chicago-based private real estate (HRE) investment firm focusing on healthcare real estate (HRE) properties, has announced the acquisition of two 20,000-square-foot medical office buildings (MOBs) in Texas.
In the first transaction, the firm acquired the MOB that serves as the home of Midland Women’s Clinic, one of the largest women’s health practices in West Texas. The clinic is located at 2500 West Illinois Ave. in Midland, directly adjacent to Midland Memorial Hospital, the largest hospital in the region.
SEP structured a 20-year sale-leaseback of the single-tenant building, which includes clinical space, lab and imaging. Midland Women’s Clinic is owned by Unified Women’s Healthcare LLC (UWH), the nation’s largest network of more than 1,500 affiliated OB-GYN practices.
The transaction, which closed July 14, was SEP’s second acquisition in Texas this year.
“Stage’s acquisition of Midland Women’s Clinic represents the kind of deal we are searching for – a 100 percent leased asset with a high-quality tenant and a prominent local practice, and located in a well-established market,” says Brian L. Howard, President, Stage Equity Partners.
“This sale-leaseback seemed meant to be, rapidly completed in an otherwise challenging time of the COVID-19 pandemic. We attribute that to a willing seller, a good broker and a repeat lender with whom we have a strong relationship, along with a great collaboration with the lead physician of the group,” Mr. Howard remarks.
Marcus & Millichap represented the seller in the off-market transaction and Wintrust Bank provided the financing. Corporate guaranty was provided by UWH, and the lease was also personally guaranteed by individual physicians of Midland Woman’s Clinic.
In a separate transaction that closed in February, before the height of the pandemic, SEP acquired the 20,000-square-foot San Antonio Medical Office Building, a 100 percent-leased, multi-tenant MOB at 9410 Dugas Drive in San Antonio. The property, situated along a busy retail corridor in San Antonio’s fastest growing submarket, is long-term leased to a variety of complementary medical practices, including family/internal medicine, dental, behavioral health and women’s health.
“The San Antonio Medical Office Building was another acquisition that checked all the boxes for Stage,” Mr. Howard says. “Not only is San Antonio a stable market with a diverse economy, including a number of military bases, the building is fully occupied with strong tenants and an average remaining lease term of eight years. The building is located in a busy location with strong visibility, a favorable parking ratio and monument signage. As was the case with our acquisition in Midland, this is the kind of deal that makes perfect sense for Stage.”
CBRE was the broker in the off-market acquisition. Financing was provided by American Momentum Bank.
“In a COVID environment, transactions with multiple assumptions are difficult to underwrite, and thus challenging to price,” Mr. Howard explains. “Considering the current landscape, Stage prefers stable assets with predictable cashflows, and that’s what we got with these two outstanding, recession-resistant properties.”
With these two recent acquisitions, SEP is re-establishing its presence in the Texas market. The firm previously owned five assets in the state, eventually selling them to realize returns for its investors. Its favorable experience with those previous investments led the firm to seek more opportunities in the state.
About Stage Equity Partners
Stage Equity Partners, LLC is a private real estate investment firm specializing in healthcare real estate assets. Brian Howard founded Stage to generate significant, long-term yields by focusing on America’s growing healthcare economy.
Based in Chicago, Stage acquires, develops and operates medical facilities that are generally smaller in size and scope than assets targeted by healthcare REITs. By focusing on a fragmented industry niche, Stage has been able to aggregate a top portfolio of Class A medical facilities across the Country. Stage’s portfolio includes tenants such as S&P AA rated hospital systems, leading physician groups and national medical service providers.
Stage’s portfolio presently includes assets in Illinois, Georgia, Florida, Texas, North Carolina, Wisconsin and Alabama. By focusing exclusively on healthcare properties and with a hands-on management approach, Stage is able to operate each facility in order to provide the highest satisfaction for its medical tenants and their patients. Combined with strategic location relevance and synergistic tenant mix, Stage is able to compress vacancy risks and generate substantial risk adjusted financial returns.
For additional information, please visit www.stageequity.com.
News Media Contact: Brian L. Howard, President, Stage Equity Partners, (847) 410-1076, firstname.lastname@example.org
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