NexCore, RREEF Strike Another Deal
Less than a month after announcing their first transaction, NexCore Group and San Francisco-based RREEF have already closed on the second deal to arise from a new joint venture that plans to recapitalize, develop and acquire $500 million in medical real estate during the next two to three years.
The JV partners have now closed on the recapitalization of Avista Two Medical Plaza, a three-level, 84,000 square foot Class A medical office building (MOB) facility on the campus of Avista Adventist Hospital, in Louisville, Colo. This latest transaction comes on the heels of the Jan. 26th announcement of the recapitalizing of Dry Creek Medical Campus, an 11-acre ambulatory care center in Englewood, Colo., in the rapidly expanding Denver Tech Center area.
Avista Two is connected to the main lobby of the full-service acute-care hospital via another MOB, Avista One Medical Plaza. Both MOBs had been developed, designed, built, owned and continue to be managed by NexCore affiliates.
“The NexCore team is excited to continue its 17-year presence on the Avista Adventist Hospital campus,” says Peter Kloepfer, Senior Managing Director with NexCore. “The first MOB was developed at the hospital’s inception in 1989-90, and Avista Two followed in 2002-03.” The Avista campus is adjacent to U.S. Highway 36 in a fast-growing area of north-central Colorado, providing easy access to Lafayette, Boulder, Brighton and surrounding communities.
Avista Two features a two-story lobby and a separate surgery center entrance. Tenants include Avista Adventist Hospital, Avista Therapy Center, Boulder Medical Center, Cornerstone Orthopedics & Sports Medicine, Flatirons Surgery Center and Orthopedic Professional Association. A small amount of space is unoccupied, Mr. Kloepfer says, but there are already offers pending to prospective tenants.
Meanwhile, NexCore and RREEF plan to close on two more recapitalizations within the next month, Mr. Kloepfer says. “The Avista Two recapitalization is just the latest in an ongoing series of targeted medical real estate transactions we will undertake with RREEF,” he explains. The partners are also working on several potential acquisitions
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. 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.
About Avista Adventist Hospital
Avista Adventist Hospital is a member of Centura Health, Colorado’s largest health care system, which operates 12 hospitals, eight senior living facilities, and a home care and hospice division. While Centura Health itself was formed only in 1995, its tradition of mission-driven care spans more than 100 years through the work of its sponsors, Adventist Health System, and Catholic Health Initiatives.