MichiganMissouriHealthcare Cornerstone Companies acquires nine healthcare properties in six states July 14, 2020 Share on Facebook Share on Twitter Share on LinkedIn Share via email Cornerstone Companies, Inc. has acquired nine healthcare real estate properties in six states totaling more than 300,000 square feet. The properties were acquired for $59.9 million by Cornerstone MOB Fund V, a private equity fund focused solely on medical real estate. Cornerstone is the fund’s general partner. The Fund V portfolio assets include: • The Eye Institute of Paducah, Kentucky – a 21,000-square-foot ophthalmology clinic serving six market-leading specialists and their patients. The newly refurbished Eye Institute is tenanted by ECP Kentucky, the largest eye-care practice in the state of Kentucky with 22 ophthalmologists and 36 optometrists, serving patients in 55 locations. ECP Kentucky is a wholly owned subsidiary of Eyecare Partners, a national optometry and ophthalmology provider with more than 450 locations in 13 states. Cornerstone Fund IV currently owns a 23,000-square-foot ECP Kentucky clinic and ambulatory surgery center in New Albany, Indiana; and Cornerstone Medical Development is currently developing a 10,000-square-foot ophthalmological ambulatory surgery center in Elizabethtown, Kentucky, with an anticipated completion date of January 1, 2021. • The Northwest Medical Center in Poplar Bluff, Missouri – a 79,000-square-foot multi-specialty clinic operated by St. Francis Healthcare, a AA-rated health system serving 33 counties across southern Missouri. St. Francis Healthcare is currently completing a multi-million refurbishment to the Northwest Medical Center, which houses a full-service pediatric care center with pediatric urgent care, imaging, pharmacy and behavioral health clinic, as well as electronic medical records management for St. Francis. • The Danville Polyclinic in Danville, Illinois – a 57,000-square-foot multi-specialty clinic operated by OSF HealthCare, an A2-rated health system with 124 locations, including 13 hospitals, 18 urgent care locations, 11 centers for health, and two colleges of nursing throughout Illinois and Michigan. The mission-critical location is less than .2 miles from OSF Sacred Heart Medical Center, which OSF acquired in 2018. The Danville Polyclinic also contains a 5,000-square-foot ambulatory surgery center operated by OSF physicians. Cornerstone Fund II owns two OSF clinics, both of which were developed by Cornerstone Medical Development, in Dwight, Illinois, and Godfrey, Illinois. • The PACE of Southeast Michigan Center in Eastpointe, Michigan – a 20,000-square-foot Program for All-inclusive Care for the Elderly (PACE) facility operated by a joint venture between Henry Ford Health System (A3) and Presbyterian Villages. Pace of Southeast Michigan operates five PACE facilities in the Detroit metro area, with the Eastpointe facility being the newest location in its portfolio. The PACE program utilizes Medicare, Medicaid and private funds to cover all medically necessary care and social services for its enrollees on a capitated payment basis. Cornerstone Fund I acquired and subsequently sold a PACE of Southeast Michigan facility located in Warren, Michigan. • The Surgery Center of Columbus in Columbus, Georgia – a 14,000-square-foot multi-specialty surgery center operated by a joint venture between Surgery Partners and 26 specialty physicians. • The Jervey Eye Group Portfolio in Greenville, South Carolina – The four-property portfolio, totaling more than 111,000 square feet, is tenanted by the largest and market-dominant ophthalmology practice in Greenville, and the third-largest practice in South Carolina. All the Cornerstone MOB Fund V assets are supported by net leases with a weighted average term of 12 years. The tenants are a mix of investment-grade health systems and market-dominant specialty physician groups. Fund V is projected to deliver a five-year average cash-on-cash yield of greater than 12.5 percent to its investors.