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Catalyst Healthcare, Heitman Launch Development JV
Newmark Group has arranged a strategic joint venture between Catalyst Healthcare Real Estate and Heitman. Newmark also helped secure $300 million to fund the development pipeline of purpose-built healthcare properties, including medical outpatient buildings, orthopedic centers of excellence and inpatient rehabilitation facilities.
The initial phase includes funding seven ground-up or in-process developments totaling nearly 500,000 square feet, spanning five states and encompassing blue chip tenants such as Ochsner Health, Andrews Medicine, University of Mississippi Medical Center and PAM Health.
“Medical office offers counter-cyclical qualities as a needs-based asset class, benefitting from secular demand drivers, including aging populations and migration of medical services out of hospitals and into outpatient settings,” said Brian Pieracci, Heitman head of private equity – North America. “The properties in the Catalyst portfolio are attractive investments due to the high acuity and strategic uses in the buildings for its major health system tenants.”
The transaction was led by Newmark’s Healthcare Capital Markets group executive managing director Ben Appel, senior managing director John Nero, executive managing director Jay Miele, senior managing director Michael Greeley and associate director Ron Ott.
- ◦Development
- ◦Financing
