Apr 22, 2024
Cypress West Partners & TPG Angelo Gordon Launch $300M Venture for Sun Belt Medical Offices
Cypress West Partners and TPG Angelo Gordon have initiated a programmatic joint venture aimed at acquiring up to $300 million worth of medical office assets across the Sun Belt in the next two years.
Traded Editorial
Cypress West Partners and TPG Angelo Gordon have initiated a programmatic joint venture aimed at acquiring up to $300 million worth of medical office assets across the Sun Belt in the next two years. CBRE Investment Banking facilitated the venture, with Michael Yang playing a key role as senior managing director.
Strategic Acquisition Focus
The venture targets strategic, high-growth Sun Belt markets to generate core-plus and value-add returns through leasing, repositioning, and redevelopment. Its first acquisition, an 85,000-square-foot medical office building in Scottsdale, Arizona, was purchased from Healthpeak Properties for $21.3 million.
Seeded Joint Venture
The joint venture commenced with the recapitalization of a four-asset portfolio in Arizona and California, totaling approximately 200,000 square feet and boasting a 97 percent occupancy rate.
Expertise and Experience
Both Cypress West Partners and TPG Angelo Gordon are seasoned specialists in the sector, capable of leveraging their combined experience to scale and operate their medical office platform effectively. Cypress West, led by Chris Cumella and Jeff Johnson, focuses on acquiring, developing, and operating institutional-quality healthcare real estate across the U.S.
Recent Ventures and Expansions
TPG Angelo Gordon, in partnership with Sendero Capital, has expanded its Rhode Island portfolio with the acquisition of a multi-specialty healthcare facility in Warwick. This marks the fifth acquisition through their programmatic joint venture initiated in July 2023, with a focus on outpatient healthcare real estate in the Northeast.
Financial Backing and Acquisition Capacity
The joint venture received a $75 million credit facility in November, backed by four assets in Connecticut, Rhode Island, and New Hampshire. Angelo Gordon, founded in 1988, operates as an investing platform of TPG, managing approximately $78 billion across various credit and real estate strategies.