NexCore Group and real estate investment advisor RREEF have closed on two more medical office building (MOB) transactions – their third and fourth deals since announcing their joint venture less than three months ago.
In the two most recent transactions, Denver-based NexCore and San Francisco-based RREEF closed on the recapitalizations of two MOBs on Alexian Brothers Health System hospital campuses in the Chicago area:
- St. Alexius Medical Center MOB III: a five-story, 114,000 square foot facility on the campus of St. Alexius Medical Center in Hoffman Estates, Ill.
- Alexian Brothers Medical Center MOB: a three-story, 65,000 square foot building on the campus of Alexian Brothers Medical Center in Elk Grove Village, Ill.
These transactions follow the Jan. 26 announcement of the recapitalization of Dry Creek Medical Campus, an 11-acre ambulatory care center in Englewood, Colo., and the Feb. 26 announcement of the recapitalization of Avista Two Medical Plaza, a three-level, 84,000 square foot Class A MOB on the campus of Avista Adventist Hospital, in Louisville, Colo.
“NexCore developed the Alexian Brothers properties and continues to provide leasing and property management services,” says Peter Kloepfer, Senior Managing Director with NexCore. “We also created a financing structure that complemented Alexian Brothers’ physician recruitment and retention efforts by providing opportunities for physician investment. These recapitalization transactions are the next step in what has been a very successful, collaborative relationship between NexCore, RREEF, Alexian Brothers and our physician-tenants.”
NexCore and RREEF are now working on several potential acquisitions, Mr. Kloepfer says. The JV partners plan to recapitalize, develop and acquire $500 million in medical real estate during the next two to three years.
About RREEF
RREEF, a unit of Deutsche Bank, is one of North America’s largest private property owners. RREEF North America is a full-service real estate investment advisor. Since its formation in 1975, the firm’s assets under management have grown to 27.5 billion dollars. RREEF North America offers a diverse menu of investment options including separate accounts, core and value-added private investment vehicles, and investments in publicly traded real estate securities.