Since May 2013, KAREA has acquired approximately 8.5 million square feet of medical office space in 173 buildings across 30 states. Through its strategic joint venture with MB Real Estate (“MBRE”), an experienced owner/operator of more than 22 million square feet of office space across the United States with a specialty in medical office assets, KAREA has a distinct sourcing advantage, which has resulted in off-market access to virtually all of its opportunities. In addition to this sourcing advantage, the real estate expertise and capital resources of KAREA, combined with the breadth of MBRE’s network within the healthcare community, puts us in a position to attract strong tenants. KAREA currently has an additional one million square feet of medical office space under agreement, with closings anticipated during the remainder of the year.
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)