Invest In Health Care Real EstateAlternative Investments
Our accomplished group of investors is diverse, sophisticated, and active. Consider participating in our next commercial project to benefit from quarterly dividends and tax savings.
Recentric Realty Capital acquires, adds value, and repositions under-valued, under-managed, under-performing, and improperly capitalized, yet income-generating, medical office buildings and net lease medical retail in Denver, Tucson, Phoenix and Las Vegas. Recentric’s sole focus is creating a diversified portfolio, generating income and equity growth. The exit strategy is to position our assets to maximize cash flow and appreciation and dispose of the properties in 5-10 years when the health care real estate markets are maximized and market conditions are favorable.
Recentric utilizes its unique and proactive approach to sourcing off-market acquisition opportunities in these regions.
The Recentric team handles all aspects of the investment including sourcing the properties to acquisition, completing the due diligence and handling the closing. They are also responsible for enacting a turnaround plan, managing and leasing the properties, handling all financial responsibilities and developing appropriate exit strategies. The managers will be investing in Member Capital. Investors can expect to receive quarterly updates and quarterly distributions, with the first distribution expected in 6-9 months from the date of each property closing.
*This is not a solicitation to invest. If you have further interest, please contact us.
Three Surprising Tax Shelter Benefits
Download Our Special Report: Three Surprising Tax Shelter Benefits of Joining an Investment Group in Medical Real Estate.
Recentric Realty Capital (RRC) has created a unique group investment strategy to capitalize on a growing population base combined with a projected increase in Baby Boomer medical spending in the western US real estate market, specifically in Denver, Tucson, Phoenix and Las Vegas.
Strong Sponsor with Significant Market Presence:
Recentric has a strong team with an extensive 14-year track record of managing, brokering, and developing/entitling commercial real estate.
Stable and Predictable Income Stream
Recentric primarily focuses on NNN and NN investments of medical office buildings and net leased medical retail with credit quality corporate and well qualified practices with ample time remaining on leases.
High Demand for Medical Office Space
Denver is a high growth city right now, for both baby boomers and young families with children. Colliers reports forecasted population growth of 24.4 percent for people 65 and older for Denver by 2019, and the city also boasts one of the highest absorption rates in the country for healthcare properties. At mid-year 2014, the average vacancy rate in Denver was 7.8 percent, according to Marcus & Millichap, while quoted rents averaged $23.99 per sq. ft., according to Colliers. Cap rates on investment sales transactions involving healthcare assets averaged 8.4 percent, with the average price of $105 per sq. ft.
Tucson has an average vacancy of city healthcare properties rate of 19.9% as of mid-year 2015. This market is a baby boomer attraction, because it is warm and affordable. Tucson offers higher returns due to higher risk, but also long term potential with population growth.
Phoenix is similar to Tucson with strong potential. Marcus and Millichap estimated is average vacancy rate at 21.6%. At the same time, Phoenix ranked 9th on Colliers list of US cities with the largest forecasted increase in population 65 years of age and older between now and 2019. Average quoted rents in the city in 2014 were a decent $22.62 per sq. ft. Meanwhile, investors were paying average cap rates of 7.7 percent and average prices of $122 per sq. ft. for Phoenix assets, compared to the average of 7.23 percent and $216 per sq. ft. for the nation.
Las Vegas is a market that tends to be among the favorite destinations for retirees. Given the abundance of desert land available for future construction projects, Las Vegas allows for significant residential/multi-family development. At mid-year 2014, quoted rents at healthcare properties in Las Vegas averaged $25.80 per sq. ft., above the national average, according to Colliers International. Prices on property acquisitions averaged $263 per sq. ft., compared to the national average of $216 per sq. ft. for the fourth quarter of 2014 reported by Real Capital Analytics (RCA), a New York City-based research firm.
Sophisticated Group of Investors
We have a diverse, sophisticated group of dozens of investors. Whether it’s on the ski slopes in Vail, a golf course in Florida, or an excursion abroad, we’d love to explore fun opportunities to connect with other investors who share our mindset: work hard, play harder.
Monthly Email For Investors
We’d love to keep in touch and share updates on new opportunities for acquisition and development, as well as current news around alternative investments and our favorite resources. Browse our past newsletters below, and be sure to sign up to receive them in your inbox just once a month.
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Investor Success Stories
We work with accredited investors all over the country. They come from a variety of industry sectors and have a breadth of experience. They all have a desire to be responsible with their wealth and are open to alternative investments.
Here are a few anonymous stories from real investors and reviews of their experience in working with Recentric.
Consider joining our group of investors, as we are a network of individuals who continually seek to grow and who also have a great deal of fun together in dialogue, travel and adventures.
Rigorous and Transparent
Our clients represent a diverse group of new and seasoned investors, usually seeking to diversify their portfolio. One couple from Colorado decided to invest in medical real estate with us after working with Darren and Amy Nakos previously on other residential, commercial and legal real estate projects.
They grew to really trust Darren and Amy – their character, knowledge, and experience, and were genuinely interested when approached with the first opportunity to invest in a new medical real estate project with Recentric. They had not known much about this niche of health care real estate investments previously, and so they appreciated all the education and information we provide.
They were comfortable with the level of investment for their first property, feeling like it was just right for their financial goals, and they were pleased to gain equity value right away. They invested a second and third time, even doubling their investment amount, trusting that they will receive a great return over time. They appreciate our “rigor and transparency” around the financial information we share, and feel empowered to continue to invest in this new industry of commercial medical real estate. From their perspective, it is less risky than other real estate investment opportunities.
During COVID, we tried to be proactive in managing all our properties and tenant agreements. These investors said they were impressed at how quickly and professionally we stayed on top of everything and kept them informed.
Patient, Detailed, Prudent
One of our investors is a managing partner in a private equity firm and family office. He began his career as a hedge fund manager, then personally investing and launched his own private equity firm in 2008.
He is well-versed in underwriting investment opportunities, and so we greatly respect his perspective when he says that he is impressed with the high-level of professionalism exhibited in our quarterly investor updates and overall service from Recentric.
Among all of his investments, he only invests in two sets of real estate firms – Recentric is one of them. He looks to Darren as an advisor and really trusts Recentric’s careful selection of investment properties.
He says that Darren is “patient, detailed, and prudent,” which is what he is looking for in alternative investments to diversify his portfolio. He says, “There is never just one thing that’s the right thing to do.” Having a variety of investment opportunities in a financial portfolio is wise.
Health care real estate has proven to be more of a “safe sector” for him, especially this year as it has survived the variability of COVID, and he looks forward to future investment property opportunities with Recentric.
Thorough in Due Diligence
One of our investors is the president of a Mortgage and Investment Company himself. (or Commercial Mortgage Bank). Initially, this investor was impressed with the resonance in values and due diligence that he and Darren shared. He and his wife have gone on to personally invest in multiple properties with Recentric now. He says that Darren has a high attention to detail and doesn’t leave anything left unturned. Darren does not rush through a purchase; he always shoots for a fair price and keenly understands the upside opportunities of a medical real estate property.
It is not always easy to find quality properties. This investor appreciates how Darren has a way of getting in front of the owners and buying a building before it is available to the rest of the world. He says, “Darren is unusual. He has a niche and really understands this asset class.”
From experience, he understands that commercial medical real estate is an asset. Physicians can’t work from home. Many people are wondering about the future of office real estate, but medical professionals have to be in their offices (orthopedics, OBGYN, internal medicine), and so this particular niche has great long-term value and reasonable stability as an investment.
Honest and Trustworthy
“Every deal has hair on it,” says one of our investors. He understands that each investment is complex, which is why he appreciates when Darren is straightforward in sharing the costs, benefits, and risks involved with each property. This young, savvy investor trusts Darren and his due diligence. He says, “Darren is honest and not blowing smoke. He explains the facts, is transparent and trustworthy.”
This investor was a banker when he met Darren and helped Darren refinance a building in Frisco. He had received classic training and real estate and finance, and was enjoying a stable career in banking, when one day he took a huge risk, and quit banking to start a company with a friend. After three years of extreme hard work and business growth, he was able to sell it, allowing him to personally enter the investment world. Today, he consults a bit, manages a credit team for a small bank in Southern Colorado, and grows his investment portfolio.
“It’s hard to find income deals/yield anymore,” says our investor. There are inherent risks in other types of investments (land, capital assets, etc). Darren understands the strength of income and credit worthiness of these alternative investments.
He says, “Medical real estate is unique in that personal guarantees are inherent (and usually hard to find). Because of them, it decreases the risk profile of the investment. These properties have great, longer-term leases. For the square footage ($30-40K), for any other industry, you would need either 1 tenant with enough credit worthiness to reduce diversity/risk, or a group of stronger credit tenants.” Medical real estate ends up being one of the more conservative investment strategies, especially with Darren’s sponsorship.