Home New mexico real estate Former Forest City Executives Launch Medicine-Focused Business

Former Forest City Executives Launch Medicine-Focused Business


Take three senior executives from the former Forest City Realty Trust Inc. of Cleveland.

Combine with another director with six years of experience in alternative investments as a portfolio manager at the large wealth manager Ancora, based in Mayfield Heights.

Join the real estate private equity go-go market. The result: Provider Real Estate Partners LLC, which began raising a $ 100 million fund to invest in medical office buildings.

This is the recipe described by Joseph Boehm IV, the Ancora alumnus and managing partner of the supplier who serves as the spokesperson for the company.

Longtime observers of the former town of Forest, now historic after being absorbed by Toronto-based Brookfield Asset Management in 2018, will recognize the names.

They are co-founders Bob O’Brien, former CFO of Forest City, and Joseph Boehm III, former executive vice president of retail leasing. (The Boehms are father and son.) The supplier’s COO is Bill Ross, whose last position in Forest City was executive vice president of asset management in his former business division.

The trio have left Forest City on several occasions. With the exception of O’Brien, who was there at the end, the others have held leadership positions in other concerns that feature in the vendor’s approach. For example, Boehm III, CEO of Provider, was Executive Vice President of Commercial Leasing at QIC Global Real Estate, the Australia-based global investment firm, until he started working on Provider there. is one year old. And Ross was CFO of the Columbus-based Daimler Group, a diversified real estate company with interests in medical office buildings.

The supplier showed its hand last Wednesday, July 14, when it announced the purchase of its first two buildings: one in Little River, South Carolina, and the other in Las Cruces, New Brunswick. Mexico. The properties total 28,899 square feet and are leased by urology and gastroenterology practices, respectively.

The supplier did not specify how much he paid for his first two properties, both of which were purchased from groups of doctors who were their former owners, which explains the real estate supplier name. However, Boehm IV said the company was looking for properties valued between $ 5 million and $ 30 million for its portfolio.

Boehm IV said Provider made an initial close in an amount it did not disclose and which was used for the first two purchases. His goal with an early close is to acquire properties to build a balance sheet as he strives to close his initial fund of $ 100 million by the end of this year.

Such a focused fund is a big departure for a group of executives with backgrounds in office buildings, shopping centers and land development.

Young Boehm said the supplier has focused on the space of the medical office building for several reasons. The industry remains highly fragmented and will benefit from the trend for medical specialists to open small specialty clinics outside of acute care hospitals, as well as the growth in general healthcare associated with the aging of the US population.

The supplier noted in its initial press release that Dr. Glenn Gangi of Atlantic Urology, which occupies the structure in South Carolina, has chosen to reinvest part of his property in the Little River property in the Provider Real fund. Estate, an option that the provider offers to physicians. the owners.

O’Brien, chief financial officer of Provider, noted in the statement that Gangi has chosen to become a partner of his fund.

“His investment brings us closer to our tenant and gives Dr Gangi the opportunity to diversify his real estate investment in a medical practice through a portfolio of high quality properties on a tax deferred basis,” said O’Brien.

Investments in medical office buildings have flourished as they are seen as a likely winner in the real estate industry despite the pandemic.

MOB investors, as they are known in the real estate industry, have been active in Northeast Ohio. For example, White Oak MOB REIT bought three of these structures in the region for $ 21 million in February.

Provider is also not the first company in the region to focus on the MOB space. Independence-based Woodside Health has been in the industry since 2008 and has acquired more than $ 350 million in medical real estate across the country, according to its website.


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