Transaction marks early, continued momentum with a third investment following the company’s launch and the closing of a $245 million equity commitment less than a month ago
CHICAGO (September 27, 2021) – CA Health and Science Trust, Inc. (“CAHST”), a newly formed and externally managed private real estate investment trust (REIT) focused on the acquisition and development of value-add and core-plus medical office and life science facilities across the U.S., today announced the closing of an acquisition of a prominent medical office complex in Munster, Indiana. The transaction includes three existing buildings totaling more than 113,200 square feet with a growing roster of healthcare provider tenants including four ambulatory surgery centers, as well as adjacent development land parcels to expand the site with up to approximately 50,000 square feet of additional medical office buildings or other complementary uses.
“I am thrilled with the immense success CAHST has seen in just its first month – a reflection of the strength of our investment strategy and the experience of our team,” said Russell Brenner, president of CAHST. “The team’s execution of the multi-faceted Munster acquisition, following our Naperville (Chicago), Illinois and Gilbert (Phoenix), Arizona investments, is a clear indication of the strong tailwinds behind CAHST.”
Located in Northwest Indiana just outside of Chicago, the property is situated on a prominent and highly visible traffic artery and is directly across the street from the 458-bed Community Hospital, which has more admissions than any other hospital in the region. Community Hospital is the flagship hospital of Community Healthcare System, a regional health system comprised of four non-for-profit hospitals and one continuing care retirement community. Munster has experienced tremendous growth as an extension of the Chicago suburbs due to its attractive economic profile and location near major highways, airports and rail lines.
“We continue to identify excellent opportunities to meet the growing demand for high quality medical office and life science facilities and are supported by the confidence of our capital partners and the CAHST team’s robust network of industry and deal sourcing relationships,” said Jesse Ostrow, chief investment officer of CAHST. “The Munster investment fits squarely within our investment strategy to acquire, develop and renovate core-plus, value-add medical office and life science facilities to assemble a large, national portfolio of premier healthcare real estate assets.”
The latest investment is part of an equity commitment of up to $245 million from partners Davidson Kempner Capital Management LP, Monarch Alternative Capital LP and CA Ventures for the acquisition, development and renovation of medical office and life science buildings and for general corporate purposes and working capital. Building upon the platform’s first three acquisitions completed within its first month, CAHST will continue to strategically scale its portfolio of healthcare real estate investments across the United States in the coming years.
Avison Young principals Mike Wilson, Erik Foster and Jim Kornick represented the seller, LBC Owner, LLC.
The offering and sale of securities pursuant to the investment was conducted pursuant to an exemption under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and have been sold in a private placement pursuant to Regulation D under the Securities Act. The sale of securities pursuant to the investment has not been registered under the Securities Act and may not be sold in the U.S. absent registration or an exemption from the registration requirements of the Securities Act.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
About CA Health and Science Trust, Inc.
CA Health and Science Trust, Inc. (“CAHST”) is an externally managed private Real Estate Investment Trust (REIT) based in Chicago, Illinois, strategically designed to invest in the acquisition and development of core-plus, value-add medical office and life science facilities across the United States. For more information, visit www.cahstreit.com.
Safe Harbor Statement
The release includes certain “forward-looking statements.” All statements, other than statements of historical fact, included in this release regarding, among other things, our strategy, future operations, financial position, anticipated dividends, projected costs, prospects, pipeline and opportunities, use of proceeds from a securities offering, plans and objectives are forward-looking statements. Forward-looking statements can be identified by words such as “will,” “could,” “would,” “potential,” “target,” “goal,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. There are risks, uncertainties and other factors, both known and unknown, that could cause actual results to differ materially from those in the forward-looking statements which include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, currency exchange rates and other factors. Any forward-looking statement made by us is based upon the reasonable judgment of our management at the time such statement is made and speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Photo captions: Northwest Indiana Medical Office Complex, Munster, Indiana
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE