Ryan Healthcare Real Estate Fund Seeks $60 Million
Executives with Minneapolis-based Ryan Companies US Inc. are looking to raise $60 million in equity for the new Ryan Healthcare Real Estate Fund I, LLC. The fund was disclosed in a Monday filing with the U.S. Securities and Exchange Commission.
The filing indicates the offering could be increased to as much as $85 million. No money has been raised so far. The name of the fund suggests that it will look to acquire health care-related properties as investments. A representative with Ryan Companies declined to comment.
Ryan has put together other private real estate funds in the past.
The fund is a separate legal entity from Ryan Companies, a large construction, development and real estate services company. But Ryan Companies executives are listed as the leaders of Ryan Asset Management Company LLC, the manager of the fund. For example Pat Ryan, president and CEO of Ryan Companies, is listed as the CEO of Ryan Asset Management.
Ryan Companies has done extensive work in the health care sector. The company recently began construction of new medical office buildings in Brooklyn Park and Maple Grove.
A recent report from the Chicago Healthcare Real Estate Group of California-based Marcus & Millichap Inc., a commercial real estate brokerage, outlined the strengths in the medical real estate sector: “The healthy performance and steady cash flows of medical office buildings has made them a much sought after property type by a collection of prospective buyers including institutional investors and real estate investment trusts. Medical office buildings are also perceived as somewhat recession-resistant, since demand for medical care is strong in both good and bad economic times.”
There are currently 17 publicly traded real estate investment trusts (REITs) in the U.S. According to statistics from the National Association of Real Estate Investment Trusts, the health care REITs had posted total year-to-date returns for 2016 of 22 percent through Monday, August 29. That’s a stronger showing than REITs focused on office properties (with a total return 15.2 percent) or retail REITs (16.6 percent).