Global real estate crowdfunding platform, Wealth Migrate, today announced the closing of a $12.7 million deal for the acquisition of four medical office buildings in Atlanta. This deal is the second of Wealth Migrate’s medical property deals in Atlanta and highlights a growing trend of international investors tapping into the U.S. medical sector for real estate investment opportunities.
Wealth Migrate’s Atlanta medical building deal includes a diverse group of investors, the majority being non- U.S. residents. The deal also boasts an estimated 22 percent internal rate of return (IRR), $4 million in equity raised through the platform and a cash-on-cash return of more than 10 percent to investors.
Wealth Migrate CEO and co-founder, Scott Picken, shared:
“With the closing of our second medical offices deal in Atlanta, Wealth Migrate is providing our investment partners the chance to further diversify their portfolios in a sector that continues to grow year after year. With the aging population and the need for more healthcare facilities, we anticipate this sector will be an area of continued interest for real estate investors for years to come, particularly in the U.S.”
According to Real Capital Analytics, medical office sales transaction volume totaled US $3.3 billion in Q4 2014, the highest since 2006. After an in-depth evaluation of many markets and asset types across the U.S., Wealth Migrate chose Atlanta for both its influx of Baby Boomers and its on-the-ground partners located in this growing market. In addition, the Wealth Migrate team has years of expertise in the healthcare real estate sector. The company previously closed a deal for seven medical buildings in Atlanta with 65,000 square feet of space and a projected 20 percent IRR over a five-year investment horizon.
Wealth Migrate Chairman Hennie Bezuidenhout, added:
“Our latest Atlanta acquisition is in perfect alignment with one of Wealth Migrate’s key investment strategies of targeting the stable, but high-growth U.S. healthcare industry. This sector within commercial real estate offers investors solid returns and less risk thanks to the higher tenant retention rates found in medical facilities. We’re excited to provide worldwide opportunities to our partners who want more diversity in their portfolios and believe the U.S. medical sector is a growth market that demands investor attention.”