Jun 16, 2021, 13:28 ET
NEW YORK, June 16, 2021 /PRNewswire/ -- CD Healthcare Infrastructure Partners, LLC (CDHIP), a real estate infrastructure fund dedicated to facilitating consumer-centric healthcare delivery, has acquired a medical property in Phoenix, Arizona. The property is primarily leased to Banner Imaging, a part of Banner Health, the largest health care system in Arizona. As one of the largest employers in Arizona with more than 50,000 employees, Banner Health has an "AA-" investment-grade credit rating and stable outlook with Fitch and S&P.
The property is located in Paradise Valley of northeast Phoenix, one of the most affluent areas of metro Phoenix. The primary market area benefits from high population density and rapidly growing aging demographics. In particular, the population of age 75 and older within a 15-minute drive time is expected to grow at 5.8% per year from 2020 to 2025. Banner Imaging provides MRI, mammography, CT, X-Ray, ultrasound, fluoroscopy, and other imaging services. Palo Verde Cancer Specialists provide PET CT scan for cancer screening at this location.
"Healthcare Infrastructure provides compelling risk-adjusted returns, as health care is a necessity. The rapidly growing aging population and expansion of the insured population are driving increased demand for good quality assets in attractive locations. This acquisition fits well with CDHIP's mandate to facilitate health care delivery in a low-cost and convenient setting nearby where people live and work," said Curt Greer, Chairman of CDHIP.
"Healthcare Infrastructure benefits from secular growth of the aging megatrend. 10,000 Americans are turning 65+ years old daily and this age group engages in 3.5x the number of per-capita health care spending than the younger population. Expansion of the Affordable Care Act and fast-growing Medicare insurance enrollment for age 65 and above are driving a secular expansion of the insured population," said Clare Duan, Founder & Principal of CDHIP.
Duan added, "Our strategy is designed to take advantage of the growth in demand for outpatient care at convenient off-campus medical office buildings, which has unlocked greater demand for consumer-centric health care infrastructure. The supply of quality health care infrastructure is limited due to a lack of speculative construction. Large addressable markets and fragmented ownership provide our firm with massive growth opportunities, and Healthcare Infrastructure tenants have high retention rates due to high switching and fit-out costs."
About CD Healthcare Infrastructure Partners LLC
CD Healthcare Infrastructure Partners is a vertically integrated real asset investment platform focused on executing a roll-up strategy of core medical office buildings that deliver high current income and facilitate consumer-centric healthcare delivery.
As an infrastructure investment firm, CDHIP offers risk-adjusted returns to its investors with uncompromising principles. Investments follow a risk control process of identifying risk, quantifying risk, and mitigating risk. Beyond traditional real estate investing techniques, CDHIP deploys massive data and tools to support physician credit underwriting and healthcare subsector analysis, involving demand drivers, reimbursement risks, competitive physician landscape, and supply and demand assessment.
Founder and Principal
CD Healthcare Infrastructure Partners LLC
SOURCE CD Healthcare Infrastructure Partners LLC
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