Healthcare real estate has emerged as one of the strongest areas of investment in the property market, following a rapid bounce-back as we said goodbye to 2021. Investors and landlords alike are both looking to capitalize on this continued growth potential, particularly as we head into what could be a challenging winter. So, how do you invest in healthcare real estate? We’ll cover a few of the best ways.
Real Estate Syndication
Syndications are a way for people to invest in a piece of real estate as part of a team or larger group. Generally, this team will be led by an experienced investor, the General Partner, who will have levied contributions from several different limited partners. The general partner will also work directly with a real estate broker to identify and close a deal. This could be an ideal option if you have the capital to invest but prefer to have someone else handle the day-to-day.
Medical Office Building Direct Ownership Or Management
If you want to invest in a piece of healthcare real estate in its entirety, ownership and management of a MOB could be the best option for you. Ownership can either be as the sole investor or through a consortium. However, it is important to note that medical office buildings have specific requirements to consider compared to typical office buildings. Some examples include co-tenancy compatibility, parking, and patient accessibility. HBRE has a wide range of properties available for lease as well as a select few that offer equity partnership or co-ownership of the building, and we have the experience to discuss what your responsibilities would be.
Real Estate Investment Trust (REIT)
A REIT is similar to investing through a syndication, in that you are investing a sum of money as part of a greater investment. However, while a syndication means that you own part of the medical office property, a REIT allows you to own shares in the company that owns the property. If the company value increases, then so does the value of your investment. This is not the case with syndication. With that said, you can buy or sell shares in a REIT more easily than in a syndication deal.
Private Equity Real Estate Funds
Private equity real estate funds (PEREs) are a type of investment fund that pool together capital from institutional investors and high net worth individuals to invest in the real estate market. PEREs can be used to finance a wide range of real estate projects, including the development, acquisition, and refurbishment of properties. In addition, PEREs can also be used to provide financing for real estate-related companies, such as mortgage lenders, hospitality businesses, and real estate investment trusts (REITs).
Curious what the best strategy is for you? Get in touch with our team. HBRE has years of experience helping investors find the perfect healthcare real estate opportunity for their specific needs, as well as working with healthcare professionals looking for their next healthcare practice location.
About HBRE
Headquartered in Nashville, Tennessee, HBRE is a full-service commercial real estate firm specializing in healthcare real estate. With over 50 years of combined industry experience serving 28 states across the U.S., we deliver exclusive healthcare solutions so you can provide the best patient care.
If you have any questions about leasing, buying, or selling a commercial property in Nashville or beyond, connect with our team today.
