INVESTMENT FOCUS

TM Medical Properties is a focused core investment real estate vehicle for those investors who desire quarterly distributions with low risk, in properties with growth in value potential, and little to no landlord responsibilities. Our focus is on health care properties leased to credit tenants on long term leases, near major local hospitals in the Southeast.

Why Health Care Tenants Only

The health care business model in the U.S. is evolving to include these changes, all of which are working in our favor as a landlord of medical properties.

  • In order to reduce cost and increase revenue, outpatient care is moving from the hospital to nearby clinics where physicians work both in the hospital and the clinic.
  • Hospitals do not want to own new real estate outside their current hospital facility, and in some cases, cannot due to regulations.
  • Medical Centers are buying up private practices in order to grow. The building in which the medical practice is located is usually owned by the doctor practice being purchased. U.S. insurance laws and other regulations make it prohibitive for the medical practice to continue to own the property, thus providing the opportunity for TM Medical Properties LLC to expand in this inefficient real estate market space.
  • The size of the buildings we tend to purchase (10,000-80,000 square feet) may have some property management responsibility (albeit very little) which makes it difficult for institutional investors to buy single smaller buildings. Many institutions and REITS, however, are looking for a portfolio of buildings, or a single large building to add to their portfolio, and thus offer us an additional exit opportunity in the future, and a buying opportunity now.
  • For these reasons, and unlike other core properties, the medical real estate market today is less efficient and works in our favor as we negotiate the terms of the purchases and leases.
  • The growth in medical care is also of prime importance and offers the highest growth rate of all industries in the U.S. Thus it offers us a much safer tenant profile than retail, office and other core property tenants. It is predicted that by 2022 twenty-six percent (26%) of all jobs in the U.S. will be in health care.

 

See these recent articles for more information about Medical Clinics as prime investments:

https://www.bisnow.com/atlanta/news/healthcare/investors-still-hungry-for-medical-office-even-foreign-investors-98941

https://www.rejournals.com/the-outlook-for-outpatient-could-mean-outrageous-returns-20190319