Developers chasing investor dollars for healthy medical office space - New Mexico Business Weekly:

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The health care real estate developmentt and project management company is buildinga $40 millioh investment fund to acquire and develop medica clinical space around the country. Tom Gibson, a partneer in the company, says the firm expects to be able to offer “double-digit” returns for investors because medical space has held its value relatively well during the past couple of “Even in the down economy, it’sa been pretty stable,” he “We’re just trying to take advantage of what’x out there.” The plan is to put significan cash into deals — paying for 40 percent to 50 percenty of a development or acquisitioh out of pocket.
That up-front along with plans for long-term ownership, will take much of the risk out of Gibson says. The Nashville-based firm has 15 yearsa of experience in medicalreal estate, having developed and managed more than 100 medica l offices and clinics in 30 states. So far, the firm has raiserd about $6 million toward the goal. It has been in talks with larg institutional investors and individuals to reach the targetr by the endof 2009, but it’w already moving forward with the money in hand. “We have a pretty good pipeline of developmentthat we’re working on that we’d like to role into the says Bond Oman, a partner in the group.
The new funds shoulc allow Oman-Gibson to double its business in the next yearor two, Oman The mix will be abouty 40 percent new development to 60 percentf acquisitions of existing properties, Oman Most of those will be single-tenanft buildings, such as offices and ancillary services like electronic imaging, with price between $3 million and $10 The goal in acquiring properties will be to gain valus in the buildings, whethet that be landing discounted prices from sellers who need the cash or re-negotiatingt leases for longer terms, adding stability to a property’x income.
The firm has about six development properties already in the pipelines but not off the ground that the fund mighr helpmove forward. “We’re looking at returns and takinfg a lot of the risk out of Oman says. Many in the real estats industry are trying to capitalize on the down inall segments, says J.T. Martin, head of the health care real-estate division at Nashville-based Southeast However, in medical real estate, there still is a large gap betweej the price expectations of buyersand sellers, he says.
“Eithere the banks haven’t squeezed them hard enoughn for them to have to or they think they canhold out,” Martin But by looking nationally, Oman-Gibson will have a better chance of finding good deals, he says.