Cornerstone Companies fully invests its MOB Fund II.
Firm finds opportunities with smaller properties in suburban and rural markets
Cornerstone Companies Inc. announced last week that it has acquired three healthcare real estate (HRE) properties totaling about 82,000 square feet in Indiana, Kentucky and Colorado for a total of $22.6 million. The properties were acquired by Cornerstone MOB Fund II, a private equity fund focused solely on medical real estate.
In addition, the Indianapolis-based firm says it has two projects under development in Illinois and one in Texas that will make up the balance of the $55 million fund. Cornerstone is the fund’s general partner.
Cornerstone’s newly acquired properties are:
- The Medical Centre at Lone Tree, a 15,000 square foot ambulatory surgery center (ASC), imaging center and orthopedic clinic that is master leased by the Spine One orthopedic group and located in the fast-growing Denver suburb of Lone Tree, Colo.;
- Muhlenberg Medical Center, a 56,000 square foot multispecialty medical clinic that is fully occupied by Baptist Health Madisonville and located in Powderly, Ky, about one hour west of Louisville, Ky.; and
- IU Health Clinic, a 12,000 square foot multispecialty clinic in Mooresville, Ind.
The development projects include two medical office buildings (MOBs) totaling 25,000 square feet in rural Illinois and a 65,000 square foot micro hospital in suburban Texas. Construction of the Illinois projects was scheduled to start in mid-May and the Texas project is slated to start in September.
Cornerstone executives say all six properties are all in line with its focus on smaller MOBs and ASCs in suburban and rural markets.
“We have identified the growing need for critical access care in rural markets as well as the demand for health systems to generate off-campus delivery models,” Cornerstone President Tag Birge explains. “We are a full-service, Midwest healthcare real estate firm that has been serving the physician and health care system market for more 30 years. Our core competencies are perfectly suited to compliment the needs of providers as they move to adopt the ‘hub and spoke’ model in order to retain and attract patient volume.”
Cornerstone says it is in the process of identifying and securing properties and projects for MOB Fund III, which it expects to launch in the fourth quarter (Q4) of this year. For more information, please visit HREInsights.com.
Read original article here.