Lincoln Property Company, PGIM Team Up for New Health Care JV

Dallas-based private real estate firm Lincoln Property Company and investment manager PGIM’s real estate business are forming a major health care-related joint venture, Commercial Observer has learned.

The JV between Lincoln and PGIM will pursue outpatient medical investments across the U.S., as well as establish “a multi-year, national investment vehicle aimed at driving sustained growth and meaningful scale for both partners in the health care real estate sector,” according to an announcement from the companies.

“This partnership was a natural choice for Lincoln,” Brian Bacharach, executive vice president at Lincoln, said in a statement. “Our firm has maintained a dedicated team of real estate professionals committed to the health care sector for nearly 30 years, and the formation of this venture with PGIM positions us to create significant scale by investing across a broad spectrum of opportunities and diverse geographies.”

Since forming the JV, Lincoln and PGIM have already completed two acquisitions in the health care sector totaling 193,000 square feet, according to the release. That includes the Imperial Medical Center in Sugar Land, Texas, and 400 Taylor Medical Center in Pleasant Hills, Calif.

The JV will “continue to pursue Core Plus and Value-Add opportunities across the country” and “focus on properties that serve as strategic outpatient care locations for a diverse group of health care providers,” the release said.

Lincoln’s history of investment in the health care sector, combined with PGIM’s $213 billion of current assets under management, also highlights the JV’s “mutual respect” to “successfully execute a disciplined, long-term investment strategy,” according to the release.

“This joint venture investment program underscores PGIM’s ability to forge creative and scalable partnerships with leading operators in high-conviction, long-term strategies,” Soultana Reigle, head of U.S. equity for PGIM’s real estate business, said in a statement to CO. “We have been a committed investor in specialized alternative sectors for many years, and we’re excited to build on that track record by further expanding our capabilities in the health care space.”

John Sarokhan, managing director and head of U.S. equity capital markets at PGIM, added that the JV will focus on senior housing as part of the investment vehicle, as “the evolution of health care and powerful demographic trends are creating sustained demand for high-quality medical and wellness real estate.”

Isabelle Durso can be reached at idurso@commercialobserver.com.