Health Equity Fund Looks Forward to $100 M Milestone

The fund will continue to target specialized assets as demand continues to be high.

By Alex Girda, Associate Editor

Chicago– A new group of private equity funds that will deal with the acquisition of NNN-leased healthcare real estate assets was recently launched by Prime Property Investors Ltd. The Northbrook, Ill.-based company closed the first $25 million in late last year and is looking to continue investing roughly $100 million in healthcare real estate by the end of 2016.

UCHealth ER in Littleton, Colo.
UCHealth ER in Littleton, Colo.

Prime Healthcare Investors I completed the acquisition of three assets evaluated at about $25 million: First Choice Emergency Room in Wylie, Texas, Elite Care in Lewisville, Texas, and UCHealth ER in Littleton, Colo.

The first asset is fully occupied by Adeptus Health Inc. on a 20-year triple-net lease. Elite Care is fully leased to Greater Houston Emergency Physicians for an initial 12-year term, while the last healthcare property was only recently completed and is under contract with the University of Colorado Health on a 20-year triple net lease.

As highlighted by the three properties, Prime Healthcare Investors is looking for investment opportunities in niche property types such as physician offices, urgent care clinics, ambulatory surgical centers, and specialty hospitals. According to Prime Property co-CEO Barbara J. Gaffen, the U.S.’s aging population combined with the need for increased access to care are driving demand to new highs that are reflected in real estate markets across the country.

Image courtesy of UCHealth ER