Since May 2013, KA Real Estate has acquired approximately 11.4 million square feet of medical office space in 252 properties across 36 states. Through its strategic joint venture with MB Real Estate (“MBRE”), an experienced owner/operator of more than 32 million square feet of office space across the United States with a specialty in medical office assets, KA Real Estate 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 KA Real Estate, combined with the breadth of MBRE’s network within the healthcare community, puts us in a position to attract strong tenants. KA Real Estate has aggregated and sold 1.4 million square feet of medical office space to a large institutional buyer within the last year and continues to implement operating efficiencies and lease-up strategies in its existing portfolio.
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)