Caddis sells Frisco medical building, part of $100 million-plus deals so far in 2012

October 4, 2012 Dallas-based medical real estate firm Caddis Partners has sold its Main Street Medical Plaza in Frisco. With the purchase of the Frisco medical office building by Griffin-American Healthcare REIT II, Caddis has now sold more than $100 million in healthcare properties – mostly located in the Dallas-Fort Worth area.

“This sale best exemplifies our strategy as a firm,” Caddis CEO Jason Signor said in a statement. “We create value through our development and acquisition platform.”

Caddis is one of the largest developers and investors in healthcare properties in the U.S. The company acquired the 51,000-square-foot Main Street Medical Plaza in Frisco in 2009. The building was acquired after foreclosure. Texas Sports Medicine is a major tenant in the complex.

California-based Griffin-American Healthcare REIT II bought the building using a $14.6 million loan from the Bank of America and an undisclosed amount of cash.

Caddis said that this year it has sold eight properties for $102.2 million – including the Frisco building. The dispositions included five medical office buildings and one rehabilitation hospital that were developed by Caddis from 2008 to 2011 and are located in the D-FW area. American Realty Capital Healthcare Trust bought Caddis properties Arlington, Sunnyvale and Bedford. Along with the Frisco property, Griffin-American purchased Caddis buildings in DeSoto, Rowlett, Temple and in Killeen. All the buildings Caddis sold totaled 327,679 square feet and were on average 96 percent leased, the company said.

Cain Brothers, an investment banking firm, marketed the properties for sale. Caddis Partners will continue to manage seven of the eight properties that were sold to the real estate investment trusts. With the sales recently completed, Caddis officials say that they plan to ramp up the company’s medical property acquisitions.

“Our investors are eager for us to re-deploy their capital, and as a result we are looking to place between $80 million and $100 million in acquisitions over the next 12 months,” Signor said. “Healthcare real estate really is becoming an asset class of its own. We will continue to leverage our knowledge of medical operations and expertise in real estate to grow our acquisitions, leasing and management platforms while also developing three to five properties a year.”