REAL ESTATE INVESTMENT
Anchor Health Propertiesc | September 27, 2022
StepStone Real Estate, the real estate arm of private markets investment firm StepStone Group Inc., has made a significant strategic equity investment in Anchor Health Properties (Anchor), a best-in-class owner, manager, and developer of healthcare real estate across the United States. The investment was made through a separate account managed by SRE on behalf of a large international pension fund client. As of June 30, 2022, SRE oversaw US$168 billion in global real estate capital allocations for its limited partners and clients. Anchor intends to utilize the investment to fund future platform growth, as well as to enhance its balance sheet and credit reserves. Anchor Health Properties continues to be the majority owner and managing member of the operating platform.
"The commitment of one of the world's largest institutional investors to partner with the Anchor platform will help us manage and accelerate future growth in the coming years, We are confident that Anchor and SRE share a similar cultural fit, long-term ownership mentality, appropriate risk-adjusted decision making, and a vision to facilitate best-in-class healthcare services through our healthcare facilities across the United States. We are excited for this next chapter of Anchor's growth as we continue to 'pursue better healthcare through real estate solutions' across our three major service lines."
-Ben Ochs, Anchor's Chief Executive Officer
James Schmid, the firm's Chief Investment Officer, noted, In early 2022, Anchor evaluated the potential to enhance the firm's corporate balance sheet and prepare for the next stage of platform growth. We had the opportunity to meet with a wide range of equity and debt capital investors across the globe and evaluate the potential to partner with strategic growth capital as we continue to expand our development, management, and investment reach and capabilities. We anticipate there will be increased investment and development opportunities in the coming months and years, and we are well positioned to take advantage to drive outsized returns for investors as those opportunities arise. Further, we are excited to benefit from SRE's insights into global capital flows and dynamic approaches to business execution.
John Waters, SRE Partner and Head of Investments added, We got to know Anchor while we were evaluating best-in-class partners with which to make a strategic investment in the US healthcare real estate sector. We believe that our recapitalization of Anchor will help them to achieve their growth objectives and significantly enhance their operating platform going forward.
Ted Flagg, Senior Managing Director for JLL Securities, facilitated a targeted investor process to help Anchor evaluate equity and debt options for a platform investment over the course of 2022. Mr. Flagg added, JLL Securities is pleased to have represented Anchor to find the right investor for long-term platform growth. After considering a meaningful number of different and attractive proposals from domestic and international investors, JLL worked with Anchor to determine the best strategic fit with a partner who shared a similar approach to investing, including a long-term investment mindset and a continued commitment to providing exceptional services for healthcare real estate.
Anchor Health Properties was advised on legal elements by Goodwin & Proctor LLP during the transaction process. SRE was advised by Latham & Watkins LLP. Jones Lang LaSalle Securities provided financial advisory services to Anchor Health Properties for the transaction.
About Anchor Health Properties
Anchor Health Properties is a national, full-service healthcare real estate development, management, and investment firm serving investors and health systems. Leveraging our collective experience and resources, our nimble, and thoughtful team of professionals develop and deliver tailored, client-specific solutions to respond to today's healthcare challenges – thinking outside the "medical office box." With more than $1.5B of completed development projects, nearly 9M square feet under management, and nearly $3B invested in stabilized healthcare facilities, Anchor continues to create a better healthcare experience for patients and a competitive edge for our clients. Anchor maintains multiple offices nationwide and features more than 100 professionals in its ranks. Healthcare today calls not only for new and more efficient ways of delivering healthcare services, but also a different kind of healthcare real estate company.
REAL ESTATE TECHNOLOGY
WegoWise and Measurabl | September 02, 2022
Measurabl, the world’s most widely adopted ESG technology platform for real estate, today announced its acquisition of WegoWise, a software platform for utility data automation and residential real estate from AppFolio, Inc., a leading provider of cloud business management solutions for the real estate industry. As a result of the acquisition, Measurabl will consolidate a mature, scaled utility automation backbone and residential real estate software application into its overall ESG platform, eliminating barriers to accessing utility data while authentically serving the rapidly emerging ESG needs of single- and multi-family real estate. The acquisition is Measurabl’s second this year, following the April acquisition of Hatch Data.
Until now, most utility data acquisition required a mixture of third-party technologies and service providers. WegoWise radically alters this dynamic with its proprietary utility automation infrastructure, which unlocks unique business and product innovation opportunities for Measurabl’s customers and partners while also further extending Measurabl’s leading position in ESG services to all asset classes from commercial to residential.
“Our product vision is to deliver ESG solutions for every real estate stakeholder from owners to lenders, occupiers to residents from meter to market, This is another major step in delivering on our expansive vision of removing barriers to sustainability data and making it accessible across the entire real estate industry.”
-Matt Ellis, CEO and Founder of Measurabl
Over the last several years, WegoWise has been vital in not only determining the multiplication of energy and water savings we have been able to achieve over our portfolio of communities, but in easily communicating that savings to our clients and residents, Now that WegoWise is part of Measurabl, we’re excited to have access to a more expansive, market-leading ESG toolkit that can help us bolster our ESG program even further,said Elizabeth Merzigian, Sustainability Manager at Peabody Properties, Inc.
WegoWise enjoys particular success in multifamily real estate and affordable housing, for which it developed nuanced product capabilities to automate utility data collection, benchmark assets and residential units, and support U.S. regulatory reporting. WegoWise’s customer base of over 650 customers is entirely additive to Measurabl’s already globally leading solution adopted across over 13 billion square feet of commercial real estate in 90 countries.
WegoWise is utility data management and analytics software for real estate. The company was founded in 2010 in Boston. It quickly found success in the multifamily segment, for which it developed nuanced product capabilities to automate utility data collection, perform benchmarking and support local U.S. regulatory compliance reporting including the Freddie Mac and Fannie Mae green loan programs.
Measurabl is the world’s most widely adopted ESG (environmental, social, governance) technology solution for real estate. Customers use Measurabl to measure, manage, report and act on ESG data on more than 13 billion square feet of commercial real estate across 90 countries valued in excess of $2 trillion. Measurabl empowers customers to optimize ESG performance, assess exposure to physical climate risk, drive decarbonization and secure sustainable finance opportunities.
REAL ESTATE INVESTMENT
Capital Square | August 23, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the acquisition of Rivergate, a luxury 402-unit multifamily community in the Washington, D.C. suburb of Woodbridge, Virginia. The community was acquired on behalf of CS1031 Rivergate Apartments, DST.
"I thought it could not get any better than the acquisition of Class A+ 2000 West Creek in 2019 for $103 million for Capital Square's 1031 exchange/DST program, but then we continued to acquire a large portfolio of comparable Class A+ apartment communities and, now, Rivergate Apartments in Woodbridge, Virginia, These Class A+ acquisitions perfectly fit the DST acquisition strategy of buying best in class multifamily assets for stable returns and capital appreciation. The acquisition of best-in-class assets demonstrates the maturation of the DST industry."
-Louis Rogers, founder and chief executive officer of Capital Square
Located at 13175 Marina Way, along the picturesque Occoquan River in the Potomac River basin, Rivergate is in a scenic area with excellent community amenities that include a resort-style swimming pool and sundeck, a rooftop terrace with cabanas, outdoor sofas and a bar, a courtyard with a firepit, gas grilling stations, a state-of-the-art fitness center, two resident clubrooms, a business center, a paw spa with a self-service wash and grooming suite, a volleyball court, kayak and bicycle storage, a multi-level parking garage, a package concierge, on-site management and maintenance and controlled access.
The Greater Washington, D.C. and Northern Virginia economy has experienced consistent growth and diversification over the past several years, supported by the federal government and largely devoid of highly cyclical industries. The area is home to several international companies, including Amazon, Booz Allen Hamilton, Capital One Entities, Freddie Mac, GEICO, Hilton Worldwide Holdings, Inc., Marriott International and Northrop Grumman.
Rivergate is ideally located in a thriving economic sector of Northern Virginia that continues to enjoy significant employment growth and will soon welcome Amazon, which will open its second global headquarters nearby in 2023, The Amazon facility is just 20 miles from Rivergate and is expected to employ 25,000 people. Amazon joins a host of other major international companies that call the region home,said Whitson Huffman, chief strategy and investment officer.
Rivergate is just four miles from both the 183-bed Sentara Northern Virginia Medical Center and a new, $200 million Kaiser Permanente medical center. Together, these employers support approximately 1,500 workers.1
Potomac Mills, Virginia's largest enclosed outlet shopping and dining destination with more than 200 storefronts and restaurants, is just five miles from Rivergate. Stonebridge at Potomac Town Center, a 500,000-square-foot open-air lifestyle center, is just six miles from the property. Stonebridge features a Wegmans Food Market, full-service health club, Alamo Drafthouse Cinema, and a splash pad water park for children. Rivergate residents enjoy ready access to both Ronald Reagan Washington National Airport, situated 20 miles northeast of the property, and Dulles International Airport, located 30 miles to the northwest.
CS1031 Rivergate Apartments, DST seeks to raise $46.5 million in equity from accredited investors and has a minimum investment requirement of $50,000.
Since its founding in 2012, Capital Square has acquired 153 real estate assets for over 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.0 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for six consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.