Dallas real estate firm Caddis — which has a significant presence in Houston — is getting a boost to plans announced last year to acquire medical office buildings thanks to additional capital supplied by an investment giant.
Invesco Real Estate, the real estate arm of Atlanta-based Invesco PLC (NYSE: IVZ), has formed a strategic joint venture with Caddis to purchase up to $1 billion in health care real estate in the next three to five years, a goal the Dallas company announced last year.
Caddis closed on a fund dedicated to that goal in November and consolidated a dozen medical real estate properties owned by its subsidiaries at the time. The firm purchased another three properties for about $56 million after closing the fund.
In the new partnership, the plan is to combine Invesco’s commitment with equity provided by the fund, allowing the joint venture to acquire "core and core-plus health care real estate assets" across the country, per a release. Invesco did not disclose how much funding it will provide in its partnership with Caddis.
For the investment giant, the deal is a chance for the firm to diversify its holdings in key “sunbelt” markets in Texas, Georgia, South Carolina and Florida — where Caddis had already rounded up deals.
In addition to a Houston office at 3663 N. Sam Houston Parkway E., suite 600, Caddis has owned, developed or managed at least nine medical properties in the greater Houston area:
Memorial Hermann Convenient Care Center in League City.Memorial Hermann Convenient Care Center in Spring.Katy Convenient Care Center.Friendswood Medical Office Building.Heartis Clear Lake in Webster.Heartis Cypress.Heartis Conroe Memory Care.Atascocita Medical Center in Humble.Lone Star Family Health Center in Conroe.
Caddis CEO Jason Signor said the joint venture with Invesco marks the changing of its business model from being "transitional owners to perpetual owners."
Daniel Kubiak, senior director of portfolio management at Invesco Real Estate, said his company has a long track record of investment in medical office facilities through the public markets.
"The off-market acquisition provides an immediate diversified medical office portfolio with 15 assets in key markets across the ‘sunbelt’ southeast U.S. region," Kubiak said. "The assets provide a good mix of single- and multi-tenant options and fit well within our existing diversified income-focused strategy. We are looking forward to working with Caddis to add value within our existing portfolio of assets, as well as growing the portfolio over time.”
The partnership comes as private investment firms and real estate companies are eyeing a potential slowdown in the U.S. economy in the years ahead. Medical office buildings, or MOBs, are widely considered “recession-proof” investments.
Jen Para is the web producer at the Houston Business Journal. Jon Prior from the Dallas Business Journal and staff at the Atlanta Business Chronicle contributed to this report.