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Caddis' First Fund Adds MOBs in Atlanta, Houston, Dallas

Healthcare Real Estate Firm Acquires Three Properties Comprising 120,000 SF, Pays Record PSF Price for Atlanta's Brookhaven Medical Center
February 9, 2018
Pictured: Brookhaven Medical Center in Atlanta.

Fresh off closing its first investment fund, a national healthcare real estate company has acquired medical office buildings (MOBs) in Atlanta, Dallas and Houston.

Dallas-based Caddis confirmed today it has acquired Brookhaven Medical Center just north of Atlanta, Prairie View Medical Plaza in the Dallas suburb of Flower Mound, TX, and Atascocita Medical Center in Humble, TX, in metro Houston. The three MOBs comprise a total of more than 120,000 square feet of space.

Caddis paid $27.64 million - or a record $568.86 per square foot - for the Brookhaven MOB, according to DeKalb County real estate records. The transaction sets a record for office sales, based on its price per square foot.

Texas law does not require the disclosure of real estate sales, so no public information on the sales prices of the other two assets is available.

Upon acquiring the trio of MOBs, Caddis added them to its first investment fund, Caddis Acquisition Fund I, which initially closed in November 2017, while simultaneously acquiring a portfolio of 12 MOBs for an aggregate amount of $111 million.

"With demand for medical office buildings at an all-time high, we felt this was an opportune time to acquire these excellent assets," Caddis CEO and partner Jason L. Signor said. "They house a wide variety of leading well-known healthcare providers, they have high occupancy, and they're in ideal locations near residential neighborhoods and retail venues.

"They're also located in high-growth communities with excellent demographics and strong economies. They are a perfect fit for Caddis' portfolio."

Brookhaven Medical Center is a three-story, 48,588-square-foot building at 3925 Peachtree Rd., just north of the city of Atlanta line. The property, which opened in 2016, is 100 percent leased. Piedmont Healthcare occupies the top two floors, and a Walgreens store is on the ground floor. The seller was a joint venture between developer G.H. Anderson & Co. and The Gipson Co.

G.H. Anderson CFO Lorraine Ferguson said Caddis delivered as promised and worked with the existing tenants to make the change of ownership seamless. "The transaction was mutually beneficial for all," Ferguson said. "Working with the professionals at Caddis was a great experience."

The Atlanta deal comes as Caddis is "building relationships and expanding its presence in Atlanta and Southeast through its development, acquisition and property management platforms," Caddis Marketing Manager Stacey Berman tells CoStar News. To that end, Caddis added healthcare real estate veteran and expert Christine Gorham of Atlanta as director of its Southeast Region.

Prairie View Medical Plaza at 4001 Long Prairie Rd. in Flower Mound is a 43,119-square-foot building that was developed and owned by Caddis until the company sold it in 2015. Now back under Caddis ownership, Prairie View has 12 suites that are 100 percent leased. Tenants include Texas Health Resources and Cook Children's Pediatrics.

Atascocita Medical Center is a 30,960-square-foot building at 17903 West Lake Houston Pky. in Humble's popular Lake Houston area. Completed in 2015, Atascocita comprises nine suites and is 94.4 percent occupied. Tenants include Memorial Hermann Medical Group Pediatrics Atascocita, an urgent care clinic and primary and specialty care physicians.

Looking ahead, Caddis is seeking additional acquisitions. "We are in the market in Atlanta and nationwide for more Class A facilities," Berman said.

For additional information on Caddis' purchase of Brookhaven Medical Center, please see CoStar COMP #4128077.

Tony Wilbert, Atlanta Market Reporter  CoStar Group   
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