AXSYS Capital Closes Fund for Midwest MOBs

Illinois-based AXSYS Capital has closed on its fund, dubbed AXSYS Capital Fund I, LP. A spokesperson for the company confirmed for Commercial Property Executive that it has raised $10 million so far.

The fund will focus on acquiring medical office buildings in the Midwest, specifically in states such as Wisconsin, Ohio, Missouri and Illinois over a period between six and 12 months. AXSYS Capital is a company that focuses on acquiring medical facilities that are in the $2 million and $6 million bracket and which are not sought after by institutional investors.

AXSYS Capital Fund I, LP has already purchased three properties in the second half of 2023, two located in Wisconsin and one in Illinois. Among those, there is a 15,366-square-foot medical office building at 853 Medical Drive in Wentzville, Mo. The company paid $3.6 million for the property, its seventh acquisition in the state.

Another addition to the portfolio through the fund was the purchase of a mixed-use medical office in Germantown, Wis., anchored by DaVita., which traded for $1.5 million. Montecito Medical has also recently acquired an asset in the same location, the two-building Aurora Health Center.

AXSYS Capital’s growing medical office portfolio

AXSYS Capital’s third acquisition through the fund was a 34,760-square-foot medical office building in Franklin, Wis. The company picked up the asset for $5.2 million, aided by a $2.6 million loan by Constellation Insurance, CommercialEdge data shows. Five additional properties are set to be purchased through the fund across the Midwest.

The firm has a portfolio of assets under management which is worth $60 million. Currently, it has acquired, renovated and repositioned more than 25 commercial and mixed-use properties, totaling more than $74 million.