Cornerstone MOB Fund IV Acquires $23.9M Portfolio

INDIANAPOLIS – Cornerstone Companies, Inc. recently announced the purchase and development of six healthcare real estate properties totaling more than 87,000 sf in Indiana, Kentucky, Ohio and Tennessee for a total of $23.9 million. The properties were acquired by Cornerstone MOB Fund IV, a private equity fund focused solely on medical real estate. Over the past three years, Cornerstone has established four MOB funds which have invested more than $84 million in the acquisition of healthcare real estate assets.

Cornerstone MOB Fund IV is comprised of the following properties:

• Trinity Health Endoscopy Center | 1805 Sinclair Ave, Steubenville, OH
  An 8,605-sf endoscopy center that is fully leased and operated by Trinity West Hospital, a wholly owned subsidiary of CHI.
• Owensboro Dermatology Associates Clinic | 2821 New Hartford Road, Owensboro, KY
  A 17,641-sf clinic that is fully leased and operated by the largest dermatology practice in the greater Louisville-Owensboro region.
• Heart and Vascular Center of West Tennessee Clinics | 17 Center Plaza Dr, Jackson, TN and 9486 Highway 412, Lexington, TN
  Two clinics totaling 28,598 sf that are both fully leased to the leading cardiovascular practice in western Tennessee.
• Nova Med Surgery Center | 519 State St, New Albany, IN
  A 22,796-sf ambulatory surgery center and ophthalmology clinic that is fully leased to EyeCare Partners Kentucky, the largest eye care practice in the state of Kentucky.
• Cornerstone initiated the development of a new, state-of-the-art, ophthalmic ambulatory surgery center totaling 9,650 sf located in Elizabethtown, KY that will be completed in the summer of 2020. The development is fully leased to EyeCare Partners Kentucky.

Healthcare real estate investments continue to be a bright spot amongst all investment classes, and Cornerstone Funds continue to outperform NARIET averages and other key investment indices. Cornerstone MOB Fund IV is projected to deliver average cash on cash returns to its investors of more than 12% over the next five-year period. After delivering returns of over 10% and 11% in 2018, Cornerstone’s MOB Fund II and III are poised to deliver cash on cash returns to its investors of 8.3% and 9.6% in 2019. Cornerstone MOB Fund I was sold in October 2018 and delivered a three-year IRR of nearly 17% to its investors. Cornerstone’s investment thesis continues to deliver attractive portfolios of high-quality medical real estate, occupied by long-term, credit tenants, generating sufficient cash flow to deliver superior returns to investors. Cornerstone is expected to announce the launch of Cornerstone MOB Fund V prior to the end of 2019.