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Terravet’s Vet REIT –  Q&A with Dan Eisenstadt 

Terravet Real Estate Solutions is in the business of buying and managing veterinary properties. The Bala Cynwyd, PA-headquartered company recently launched its first private REIT for veterinary real estate. The REIT is open to veterinary real estate owners and is capitalized by Terravet’s existing funds.

Connect CRE recently asked Terravet founder and CEO Dan Eisenstadt questions about the REIT’s purpose, reasons and targeted investments.


Dan Eisenstadt

Connect CRE: Why launch a veterinary REIT?

Dan Eisenstadt: We launched a veterinary REIT because we believe that the best veterinary buildings are excellent long-term real estate investments. The quality of veterinary real estate has improved such that the strongest veterinary buildings are of the same caliber as newly constructed human medical facilities. Increasingly, veterinary practices are being consolidated by corporate operations with strong credit and experienced management. The demand for veterinary services has increased and should continue to do so in the future. 

Connect CRE: How does a veterinary REIT differ from medical office REITs? Other than the patients, of course.

Dan Eisenstadt: Most medical REITS focus on multi-tenant office buildings and occasionally acquire single tenant healthcare properties. Terravet’s veterinary REIT focuses on single tenant veterinary facilities that either house large general practices located in retail corridors or 24/7 specialty/emergency hospitals that are typically located in office or flex areas.

Connect CRE: What is your property focus?

Dan Eisenstadt: Terravet REIT Inc is focused on free standing buildings that either house large veterinary general practices or specialty emergency 24/7 veterinary hospitals. Terravet sources properties located in suburbs or exurbs of the top 200 metropolitan areas. The REIT will hold long-term and the entity is set up as a permanent capital vehicle. Terravet does not expect to engage in renovations and expansions of existing facilities.

Connect CRE: What is the initial capital raise and estimated returns?

Dan Eisenstadt: The total initial equity which includes cash and contributed property value is around $50 million. Terravet REIT Inc. will initially focus exclusively on UPREIT transactions. Terravet is targeting high, single digit cash on cash yields.

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Terravet Real Estate

About Amy Wolff Sorter

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