Since May 2013, KA Real Estate has acquired approximately 24 million square feet of medical office space in over 550 properties across 41 states. Together with its exclusive joint venture operating partner in medical office, Remedy Medical Properties (“Remedy”), KA Real Estate is the largest privately held, non-hospital affiliated owner of the asset class in the United States. Through its partnership with Remedy, an experienced owner and operator in the medical office industry since 1984, KA Real Estate has a distinct sourcing advantage, which has resulted in off-market access to virtually all of its opportunities. The real estate expertise and capital resources of KA Real Estate, combined with the breadth of Remedy’s network within the healthcare community, have allowed the joint venture to acquire properties that are undermanaged and undercapitalized and turn them into institutional quality portfolios via renovations and operational improvements. Since 2017, KA Real Estate has aggregated and sold 6.9 million square feet of medical office space to large institutional buyers and continues to implement operating efficiencies and lease-up strategies across its existing portfolios.
Medical Office
Medical Office Investment Fundamentals
High retention rates: Over 80% of medical tenants renew their leases vs. 60% renewal rates in traditional office tenancy
Recession resistant asset class which is minimally correlated to macro-economic trends and inherent supply constraints create significant barriers to entry
Key healthcare relationships (both sourcing and leasing) are imperative to success
Changing delivery model (emphasizing lower costs and better results) is driving a massive shift from inpatient services (hospital) to outpatient services (medical office)
