New Players: Mohawk America, Westport/Everest JV
Everest and Westport Affiliate Form Venture to Acquire MOBs
New York-based real estate investment trust (REIT) Everest WP, LLC and an affiliate of Westport Capital Partners LLC, also a REIT, have formed a joint venture to acquire high quality, Class A and B medical office buildings, mainly in established strategic markets throughout the United States.
The new, to-be-named company intends to form an institutional-quality portfolio through a series of one-off, single-asset, and portfolio buys from hospital systems and medical office owners throughout the country.
Specifically, the new company plans to purchase medical office properties with use limited to offices for physicians, medically-related ancillary uses, and offices for non-doctor health care professionals such as dentists, chiropractors, physical therapists and psychologists.
The new company is also aiming to purchase recent vintage Class A and B properties with mission critical improvements; properties with proximity to a thriving hospital campus or strategically located off-campus buildings; properties with stable, in-place leases, with credit tenants such as a large-scale physician group or a hospital system; and with synergistic co-tenancy and lease-up opportunities, according to a press release.
The new company recently completed its first acquisition, buying the 63,000-square-foot, 98%-leased Pentagon Medical Office Building in Columbus, Ohio, for $11.1 million. The three-story, multi-tenant medical office building is located close to the Mount Carmel East Hospital campus.
Mohawk Medical Properties REIT Launches ‘Mohawk America’
Toronto-based Mohawk Medical Properties REIT, a private real estate investment trust, has acquired two premier medical office buildings in Orlando, Florida, representing the creation of Mohawk’s cross-border investment platform, “Mohawk America.”
Mohawk America will invest in economically insulated commercial real estate with growth potential and cash flow stability, according to a press release.
The University Boulevard Medical Center and Metrowest Medical Center are both 100% occupied by 100% medical tenancies. Together, the buildings contain about 60,000 square feet occupied by a primary care clinic, a surgical center, an otolaryngology group, eye doctors and a diagnostic imaging tenant.
Mohawk Medical Management Corp. is expected to use its expertise in medical office building management to provide specialized professional management services to tenants and patients in the two the buildings.
Mohawk plans to close on three additional Canadian medical properties this fall.
Written by Mary Kate Nelson
Companies:Everest WP LLC, Mohawk America, Mohawk Medical Management Corp., Mohawk Medical Properties REIT, Westport Capital Partners LLC