MED STREET CAPITAL
Acquiring and repositioning value-add medical office buildings to address the national shortage of high quality medical office space
About Us
Med Street Capital is a healthcare real estate private equity firm founded by two former hedge fund and private equity investors with deep experience investing in and adding value to both real estate and corporate investments across the entire healthcare sector. Med Street is focused exclusively on acquiring medical office buildings with unique opportunities to add significant value through strategic capital improvements, cosmetic upgrades and overall building modernization. Med Street seeks to purchase properties from or in partnership with physician groups and investors in secondary and tertiary markets across the U.S. with favorable demographic trends and dynamic, high-growth healthcare markets. Med Street is bi-coastal and has offices in both New York City and San Francisco.
Why MOBs are Compelling
We view healthcare real estate (and specifically medical office buildings) as the most compelling opportunity in real estate today. 10,000 baby boomers will be turning 65 every single day over the next 10 years, a long-term trend that will continue to drive increased healthcare utilization, healthcare employment and healthcare expenditures. Major technological shifts and medical breakthroughs are happening at an accelerating pace, emboldening governments and payors to continue emphasizing the migration of care from higher-acuity hospitals to lower cost settings in outpatient medical office buildings. Most recently, the ongoing COVID-19 pandemic has brought the national spotlight to the critical importance of health and wellness, a trend that we believe is here to stay. True to their reputation, medical office buildings have proven time and again to be among the most recession-resistant real estate asset classes. These core trends, among many others, will continue to drive long-term demand for high-quality, well-situated and conveniently-accessible medical offices buildings across the U.S.
By The Numbers:
8-9%
National medical office vacancy rate (vs. 15-16% for standard office)
7-10 Years
Average lease term for medical office (vs. 3-5 for standard office)
75-80%
Average tenant retention for medical office (vs. 50-55% for standard office)
10k
Baby boomers turning 65 every single day
20%
Percentage of population over 65 by 2050 (vs. 15% today)
About The Team
Med Street was founded by two experienced investors from leading healthcare private equity firms and hedge funds possessing deep knowledge of the intricacies and nuances of the U.S. healthcare system. Both founders have meaningful experience in multi-family residential investments and have an established track record and history of adding value to real estate investments. Med Street maintains a deep network of over 30 physician and healthcare partners / advisors (many of which own their own medical offices) across a wide range of different specialties.
Investment Approach:
- Partner with physicians, healthcare providers or investors seeking liquidity for an exit from their medical office investment.
- Seek acquisitions in above national average population and economic growth secondary and tertiary markets with strong healthcare job presence and growth.
- Typical criteria: 60-85% occupied buildings built before 2010. Typically multi-tenant. Open to both off-and-on campus MOBs, but prioritize suburban, off-campus facilities near or adjacent to large health systems or other healthcare providers.