Cornerstone MOB Fund Acquires $18.6M Portfolio
Cornerstone Companies, Inc. recently announced the purchase of three healthcare real estate properties totaling more than 94,000 sf in Texas, Louisiana and Illinois for a total of $18.6 million.
The properties were acquired by Cornerstone MOB Fund III, a private equity fund focused solely on medical real estate. Over the past three years, Cornerstone has established three MOB funds which have invested more than $59.4 million in the acquisition of healthcare real estate assets.
Cornerstone MOB Fund III is comprised of the following properties:
- The Physicians Surgery Center of Longview, a 12,538 sf multi-specialty ambulatory surgery center located in Longview, TX that is fully leased and operated by the Longview Regional Medical Center.
- The Eye Care Surgery Center of Baton Rouge, a 20,427 sf ambulatory surgery center located in Baton Rouge, LA that is fully leased and operated by the leading ophthalmic practice in Baton Rouge.
- Rockford Medical Building, a 61,174 sf multi-tenant medical office building located in Rockford, IL.
With the S&P 500 Index, the DJIA and HFRI indices all posting negative returns in 2018, health care real estate investments represented a bright spot amongst all investment classes this past year. The NAREIT Index of 18 publicly traded health care REIT’s published a total return of 7.58% in 2018. In its first three months of operations, Cornerstone’s MOB Fund III delivered annualized cash on cash returns to its investors of 10.18%. Cornerstone’s MOB Fund II, now in its third year of operations, delivered an 11% cash on cash return to its investors in 2018. Cornerstone 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.
About Cornerstone Companies, Inc.
Cornerstone Companies, Inc. was established in 1985 to operate as an integrated healthcare real estate development, leasing, property management, consulting, and investment company. Cornerstone is a privately owned company that has been involved in the healthcare real estate business for over three decades. Cornerstone has partnered with physicians and hospitals to develop more than ninety medical facilities of all types and manages more than 4,800,000 rsf of medical office space in the Midwest. Cornerstone has full-service offices in Indiana, Illinois, Kentucky, Michigan and Ohio. For more information visit www.cornerstonecompaniesinc.com.