Cornerstone Companies, Inc. announced last week it has closed on its sixth medical office building portfolio, acquiring 12 healthcare real estate properties in nine states totaling more than 155,000 square feet. The portfolio was valued at $48.7 million, or close to $314 per square foot, and was completed by Cornerstone Fund VI, a private equity fund focused solely on medical real estate.
The portfolio has a wide range of healthcare properties, including six individual clinical MOBs, three clinic/ambulatory surgery centers, an imaging and diagnostics center, a senior care facility, and a single stand-alone ambulatory surgery center.
The medical office buildings are Gateway Clinic Medical Office Building in Moose Lake, Minnesota, an 18,000-square-foot medical office building on the campus of Essentia Health’s Moose Lake Hospital, three medical office buildings comprising more than 25,000 square feet on the campus of North Okaloosa Medical Center in Crestview, Florida and a 10,000-square-foot medical office building that is 100% leased to OrthoArizona in Mesa, Arizona.
The clinics and ambulatory surgery centers are a 10,000-square-foot dermatology clinic and ambulatory surgery center scheduled to be completed in November 2021 and leased by Owensboro Dermatology, Vanderbilt University Medical Center Shelbyville Clinic, a 16,000-square-foot multi-specialty clinic, an 11,000-square-foot ambulatory surgery center home to the joint venture between Surgery Partners and five leading interventional pain specialists in Baton Rouge, Louisiana, Keystone Eye Associates ASC & Clinic, a 14,000-square-foot, full- service ophthalmology clinic and ambulatory surgery center in Philadelphia and Atlantic Gastroenterology and Endoscopy Center in Greenville, North Carolina, a 9,000-square-foot outpatient endoscopic facility.
The diagnostics clinic, Hollywood Diagnostics Center, is a 9,500-square-foot full-service center providing open and high-field MRI, CT scan, PET scan, mammography with 3D tomosynthesis, ultrasound and x-ray. It is located in Hollywood, Florida.
And at last, included in the portfolio is the Henry Ford PACE Senior Care facility in Pontiac, Michigan. The 30,000-square-foot facility provides primary and specialty care, physical therapy and assisted living services for aging adults.
All of the Cornerstone MOB Fund VI assets are supported by net leases with a weighted average lease term for the entire 12-property portfolio of more than 10 years. Fund VI is projected to deliver a five-year average cash-on-cash yield of more than 11 percent to its investors.
