Caddis completes four major medical office building closings in one day
Strong company growth’ includes two acquired MOBs in Texas, the sale-leaseback of six-building portfolio in Illinois, refinanced MOBs and more
In one fast-paced, remarkable day, Caddis completed four major medical office building (MOB) closings, including acquisitions, a refinancing, a sale-leaseback transaction and the formation of a new holding company that benefits investors. Caddis officials say this is part of a strong growth period for the company.
The national healthcare real estate firm, which is headquartered in Dallas, acquired the 15,005 square foot, multi-tenant George Dieter Medical Plaza at 1393 George Dieter Drive in El Paso, Texas. The seller/anchor tenant provided a five-year rent guarantee for the facility. The MOB houses a family practice, pediatrics and a lab/diagnostics. CapitalOne provided the financing for the acquisition.
Caddis also acquired a 21,246 square foot, medical office building at 5228 W. Plano Parkway in Plano, Texas, which serves as the hub location for a well-established orthopedic group. The orthopedic practice will continue to occupy the building under an absolute net lease with an initial term of 15 years.
“We’re very pleased with these high-quality acquisitions, which fit well with our existing healthcare real estate portfolio,” says Matt Mattox, Caddis Executive Vice President and Partner, “I commend our entire team for their hard work, but especially our new Partner, who heads up the Transaction Team, Lance Hardenburg. He ensured that these acquisitions, as well as two other closings, were successfully completed in one day.”
Mr. Hardenburg, who provided legal services to Caddis as outside counsel for several years, joined the company in February as a Partner and serves as Executive Vice President and General Counsel. Prior to that, he spent more than 20 years as a transactional attorney with Hallett & Perrin PC, a Dallas law firm.
In addition to the MOB acquisitions, Caddis used senior debt provided by CapitalOne to refinance six healthcare facilities in Florida, Georgia, South Carolina and Texas. The properties include two ambulatory surgery centers and four MOBs. These facilities and the rest of Caddis’ MOB portfolio (almost 300,000 square feet) were rolled into a new holding company.
“This new holding company provides a number of benefits for investors,” says Jason Signor, Caddis Chief Executive Officer and Partner. “It allows the investors for each of these properties to hold a more diversified portfolio with greater upside potential through accretive leasing, contractual rent growth, and the pricing premium associated with larger portfolios.”
Finally, Caddis advised the seller in a sale-leaseback transaction of a six-building, 58,902 square foot portfolio in Galesburg, Peoria, Normal and Morton, Ill. A medical practice, which was founded by an immediate family member of one of Caddis’ partners, will continue to occupy the facilities pursuant to an absolute net master lease with the institutional investor that acquired the facilities.
Mr. Hardenburg noted, “It was gratifying to see how well our team managed the overall strategy and details of these closings. It’s also important to note that our new Plano asset will be held separately from the new MOB portfolio but may be rolled into a second portfolio created with other assets acquired over the next several months.
“It’s also exciting for me to formally join the Caddis team and contribute to the company’s continued growth.”