AW Property Co. Launches its Fourth Healthcare Real Estate Fund and Acquires Southeast Medical Office Portfolio
North Palm Beach, Florida, June 3, 2021 – AW Property Co., a real estate investment and operating company specializing in healthcare properties, today announced the $60 million first closing for its fourth medical office investment fund, AW Medical Office Fund IV. This full discretionary core-plus fund is targeting $100 million of equity commitments and shoots for investment returns of 13%. With leverage, it will have $300 million of buying power.
AW targets medical office investments in the Southeast US that are located in close proximity to hospitals operated by leading healthcare systems and select off-campus assets with hospital or key provider affiliation. The firm pursues assets with attractive current income and growth potential through leasing and operational improvement. Once a property is acquired, AW leans on its operating platform to maintain high occupancy at stabilized assets and enhance underperforming assets into best-in-class product. The typical transaction size is $10 million – $70 million.
The firm does not use a placement agent and solicits capital mostly from family offices. Previous investment vehicles include three closed-end funds and joint ventures with Behringer Harvard of Addison, Texas, Five Mile Capital of Stamford, Conn. and MedProperties, a Dallas-based healthcare investment fund. AW’s prior vehicle, the fully discretionary Fund III, held a final close in 2017 on $50 million of equity and is fully invested.
The investment management firm is run by managing principals, Brian Waxman, a former real estate attorney, and David Lebenson, former CFO of Rendina Healthcare Real Estate. Zack Drozda, a senior director of the healthcare investment advisory team at JLL, recently joined AW as Vice President of Investments and is leading acquisitions for Fund IV.
Last week, Fund IV made its first investment and acquired an off-market portfolio of thirteen medical office buildings located in Eastern Tennessee and Southwestern Virginia. The 410,000 square foot portfolio was acquired for $67,500,000 from Healthcare Trust of America (NYSE: HTA). The portfolio is aligned with hospitals operated by the dominant regional provider and investment grade rated Ballad Health (S&P: A-, 21 hospitals) and the leading multi-specialty physician group Holston Medical Group (45 locations, 1,000+ employees). Ten of the building are located on or adjacent to hospital campuses, the remaining three are located in suburban locations.
Visit awproperty.com for more information.
About AW Property Co.
AW Property Co. is a fully integrated real estate investment company that specializes in acquiring and enhancing medical and professional office properties in major markets throughout the Southeast. AW has a highly dedicated, customer-focused team of professionals with expertise in all facets of real estate acquisitions, redevelopment, finance, operations and asset management. AW’s headquarters are located in North Palm Beach, Florida.
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