Amalfi Capital partners with Cypress West for the sale/lease back of a 14-property medical office building portfolio in the greater Phoenix, Tampa, Tucson, and Ft. Lauderdale markets.
For Immediate Release – Wickatunk, NJ, July 1, 2021
1. One of the Largest Private Owners of MOB in the Nation: – Cypress West Partners (CWP) is one of the largest private owners / managers of MOBs in the U.S. with over 2.5 million SF of MOBs under management, covering more than 550 tenants.
2. Immediate Scale Opportunity: – The Portfolio investment provides a unique opportunity to achieve instant scale and critical mass in a healthcare real estate sector that has, historically, been fragmented. Individually, dialysis real estate assets have demonstrated excellent stability and been proven to generate significant interest from
high-net-worth investors, 1031 trade buyers, and NNN lease acquirers due to their single-tenant, long-term lease nature and minimal management and capital requirements. However, the industry has generally seen a lack of large portfolio opportunities. The offering is attractive in that it offers immediate scale through the aggregation of 14 properties and future offerings, giving investors instant benefits in management efficiencies and the opportunity for more meaningful equity deployment.
3. Stabilized Portfolio with Attractive Fundamentals: – The 100%-leased portfolio exhibits exceptional stability with a 11.5-year weighted average lease term (WALT) and NNN leases to mitigate operating expense risk. The Portfolio has strong contractual annual escalations of 2.29% and has minimal near-term leasing or capital requirements,
offering investors a stable cash flow stream. A majority of the assets were either built-to-suit or recently renovated to exhibit good curb appeal, with a weighted average age of 7 years which mitigates near term capital requirements. additionally, DaVita (Moody’s: Ba2), the largest provider of kidney care services in the U.S., occupies approximately 51% of the total portfolio.
4. Strategic Provider Alignment: – The Portfolio presents an attractive opportunity to align with the nation’s largest and leading physician Management Services Organization (MSO) for dialysis and kidney care, healthcare sectors with strong growth fundamentals and tailwinds. Global Nephrology Solutions & member affiliated physicians’ practices
occupy 43% of the Portfolio’s rentable SF have demonstrated long-term commitment to these strategic assets as evidenced by the execution of 15-year lease commitments for their spaces.
5. Located Top 20 Markets: – The majority of the properties in the Portfolio are strategically positioned for healthcare demand. The locations are considered high growth markets, given that all of the markets are projected to grow more than the U.S. averages for overall population and aging population. Additionally, the majority of the locations are well positioned in close proximity to retail concentrations.
“We are very excited to invest in the medical office sector and to do it with a premier owner/ operator such as Cypress West. They are highly experienced in working across the entire healthcare spectrum. We like the scalability of the business plan and see this investment as just the start of a larger relationship in the future,” said Mike Schnurr, m.p. of Amalfi.
Amalfi Capital is a real estate equity firm founded in 2015 that is an investor in over 1 million square feet of property with a gross value over $125 million throughout the United States. Amalfi focuses on expanding its portfolio by acquiring or being a passive limited partner in residential, commercial, & industrial assets that it believes are well positioned for above market returns over the long run. Amalficapital.biz – AmalfiCapitalinfo@gmail.com