New Platform to Invest Up to $300M in US Medical Facilities

Neil Davis Wachsberger, Partner, Market Street Health Properties. Image courtesy of Market Street Health Properties

Health-care developer and investor Market Street Health Properties and Sixth Street, a global investment firm, have formed an institutional scale platform to invest up to $300 million initially in medical office buildings and facilities across the U.S. Sixth Street’s investment is expected to support more than $1 billion of health-care properties and may be supplemented with additional equity commitments over time.

The platform will exclusively pursue health-care real estate opportunities, including acquiring existing assets and building ground-up developments. It will also support the real estate initiatives of medical providers, with a focus on tenant-driven structures, including sale-leasebacks and build-to-suits.

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The partners did not disclose markets they are targeting, but MSHP, a Newport Beach, Calif.,-based firm, primarily invests in the Northwest, Southwest and Southeast. The firm currently has multiple portfolio investments in California, Washington, Nevada, Florida, Michigan, Oklahoma and Missouri. Formed in 2010, MSHP has completed more than 80 ground-up developments and multiple core and value-add acquisitions involving a broad range of institutional and large-scale national organizations and publicly traded health-care service providers.

Neil Davis Wachsberger, a partner at MSHP, said in a prepared statement the platform with Sixth Street is designed to accommodate unique deal structures with a focus on being nimble and highly creative. He said the firm has longstanding tenant relationships and the ability to deliver customized solutions for health-care properties across the nation.

In addition to Wachsberger, MSHP is led by two other industry veterans, Charles Smyth and Sheldon Anderson. The three executives have more than 85 years of real estate and health-care development, construction and investment experience with significant expertise in the medical office sector.

Wachsberger said they are excited to partner with Sixth Street, a leading global investment firm with more than $80 billion in assets under management. Sixth Street Real Estate invests in properties and provides financing solutions across the full range of real estate asset classes, including niche assets. The firm’s real estate business invests up and down the capital structure including equity, preferred equity and debt. Founded in 2009, Sixth Street is headquartered in San Francisco, with offices in Boston, New York, Dallas, Houston, London and Luxembourg.

Eastdil Secured served as exclusive financial advisor to MSHP on the formation of the platform.