Redico, One Orchard Partner To Launch Medical Outpatient Investment Platform 

REDICO, the company behind American House, has inked a partnership with an investment management firm and holding company to acquire, develop and manage medical office properties.

REDICO and newly created New York City-based One Orchard are launching InfraMed Properties, a new platform with 25 properties in 16 states leased by tenants under triple-net agreements. The tenants are affiliated with health systems and specialty care providers, and through the platform, the company’s leaders are targeting investments using equity as well as debt financing from Fifth Third Bank. 

The two companies are seeking to deploy and invest around $1 billion in the next 12 to 18 months.

The move fits into REDICO’s strategy for responding to evolving healthcare needs of older adults in the U.S., according to Dale Watchowski, REDICO’s president, CEO and chief operating officer. There is also the potential for synergy with American House, REDICO’s senior living platform, albeit indirectly.

“Many of the investors that are investing in our senior living buildings, both development and acquisitions … are also invested in or investing in medical office for the same reasons that we chose,” Watchowski told Senior Housing News.

REDICO is now more positioned to undertake these kinds of moves thanks to recent changes with its senior living platform. In June, American House took on full profit and loss responsibility, creating opportunities to expand into related verticals such as InfraMed.

Bradley Guz and David Elliott this year co-founded One Orchard, and are “bullish” on the outpatient medical front, according to Guz.

REDICO is planning for organic growth for the new platform, taking a different path than the company took in 2008 with the launch of American House and 13 communities. Since then, American House has grown to manage over 80 properties.

InfraMed is in its initial post-launch period focusing on hiring leaders to accomplish the company’s growth strategy.

“We see long term sector tailwinds that support, performance, occupancy, rent, etc., as well as the demographics of an aging population and the shift to outpatient in general.” Guz said.

It also comes at a time when rates are stabilizing to bring more buying opportunities to the table with motivated sellers, and more hospital systems are buying up private practices, Guz said.

While there won’t be direct and immediate crossover between American House and InfraMed, Watchowski said areas where medical outpatient buildings are near its senior housing communities could be potential areas of draw for future acquisitions.  

“What I want to do is be able to continue to serve our residents and this aging population in a way that’s accretive, and I see that in really formulating a thesis around healthcare,” Watchowski said.

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