We continue to seek additional acquisition opportunities in the growing healthcare real estate niche. Prime is an aggressive market rate buyer of healthcare real estate nationwide and makes all cash offers without mortgage contingencies.
Prime believes there is substantial opportunity to build a portfolio of Medical Office buildings (MOB) leased to single and multiple tenants as well as a triple net leased healthcare real estate assets with a concentration on the fastest growing segments. Our acquisition strategy focuses on stabilized Medical Office Buildings, General Acute Care facilities including Urgent Care and Free Standing Emergency Rooms, Dialysis Clinics, Ambulatory “same day” Surgery Centers, and other single discipline healthcare real estate.
Prime’s underwriting of potential acquisitions includes:
- the ability of the asset to meet targeted returns based on the in place lease
- rental rate escalations
- property age and condition
- creditworthiness of the tenants
- operational essential attributes of the property
- remaining length of the lease term and options
- the strength of any lease guarantees
- the tenant’s historical performance at the property or similar properties
- the potential for appreciation in value
- the location of the property
- the overall economic condition and demographics of the community in which the property is located.
Prime believes the combination of well-defined healthcare industry trends and our ability to obtain low cost debt on favorable terms creates a unique niche opportunity to increase the size of our healthcare real estate portfolio.