Elliott Bay, Pantheon Form Health-Care JV

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A joint venture between Elliott Bay Capital Trust and Pantheon Ventures is looking to build a strong presence within the health-care real estate sector. The two firms have partnered to assemble a diversified portfolio of outpatient medical properties across the U.S.

The newly created platform will prioritize investing in mission-critical single- and multi-tenant outpatient facilities. The joint venture will be looking for properties that are crucial for health-care delivery, but also for assets that provide better services in high-demand markets and are leased to top physician groups, specialty providers, hospitals and health systems.

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More specifically, the partnership is targeting assets that are leased to top national and regional healthcare systems, as well as specialized medical service providers that have a dominant position in the market and strong operating fundamentals.

David Elliott, managing director for Pantheon’s real estate group, said in prepared remarks that the firm sees long-term opportunity in the health-care real estate space. Elliott added in his prepared remarks that the platform will focus on smaller format outpatient facilities that are crucial to patients and communities. The joint venture has not made any initial acquisitions yet.

Onto the third real estate platform

For Pantheon, the joint venture with Elliott Bay represents the third real estate platform the firm has invested in since creating a dedicated real estate strategy in 2021. Owned by Pantheon Partners alongside Affiliated Managers Group Inc., the company focuses on creating platforms in needs-based property sectors, having previously invested in the single-family rental housing and grocery-anchored neighborhood retail.

While Pantheon has previously made some investments in medical assets, the joint venture with Elliott Bay represents its first major foray in the sector. As for Elliott Bay, the Seattle-based firm has more than 10 years of experience in health-care real estate investments, particularly focusing on mission-critical properties. The firm was founded in 2013 and has a portfolio of outpatient medical properties that are leased to various health systems, national companies and regional care providers.