PGIM, the global asset management business of Newark-based Prudential Financial, Inc., on Tuesday announced a strategic joint venture with Dallas-headquartered Lincoln Property Company to significantly expand its investments in outpatient medical real estate across the United States.
The partnership establishes a new, multi-year national investment vehicle aimed at creating substantial scale and growth within the health care real estate sector. PGIM, one of the world’s largest real estate investment managers with over $213 billion in assets under management, brings financial strength to the venture, while Lincoln provides nearly 30 years of operational expertise in the health care sector.
The joint venture, arranged by BlackBirch Capital, will aggregate a dedicated portfolio of assets from the ground up, focusing on properties that serve as strategic outpatient care locations for various health care providers.
“The evolution of health care and powerful demographic trends are creating sustained demand for high-quality medical and wellness real estate,” John Sarokhan, managing director, head of U.S. Equity Capital Markets at PGIM said. “With our national platform and disciplined approach, we believe PGIM is well-positioned to capitalize on these long-term drivers.”
For the Newark-based firm, the partnership represents a key component of its core-plus fund as it strategically increases its exposure to alternative sectors benefiting from major demographic and technological tailwinds, such as medical outpatient and senior housing.
Brian Bacharach, executive vice president at Lincoln, praised the alliance, stating, “Lincoln has long held PGIM in high regard as one of the most significant and accomplished real estate investment managers, and we are thrilled about the opportunity to build an exceptional platform with their incredible team.”
While the partnership is national in scope, PGIM’s headquarters in New Jersey underscores the local significance of this venture for the state’s financial powerhouse.
Since forming the partnership, Lincoln and PGIM have already executed two initial acquisitions totaling 193,000 square feet: the Imperial Medical Center in Sugar Land, Texas, and 400 Taylor Medical Center in Pleasant Hill, California. The venture plans to continue pursuing Core Plus and Value-Add opportunities throughout the country.
