Veterinarian medicine continues to advance, fueling pet ownership trends and demand for veterinarian services. This increase has spurred the expansion of veterinary practices but not their real estate, creating an opportunity that Dan Eisenstadt of Terravet REIT Inc seized upon. His Bala Cynwyd-based company recently unveiled the world’s first private REIT dedicated exclusively to veterinary real estate. Connect CRE spoke with Eisenstadt about this unique investment fund’s purpose and prospective investments.
Dan Eisenstadt: Our REIT will acquire freestanding buildings that house large veterinary general practice facilities located on retail corridors or specialize emergency 24/7 veterinary hospitals. Our strategy will be to source properties with single digit cash on cash yields and hold onto them long term – initially this vehicle will function as a closed end, permanent capital vehicle.
The REIT will acquire veterinary facilities currently leased on long-term terms to regional corporate owners and operators of veterinary practices or directly to individual veterinarians, in addition to buildings with significant development potential in key U.S. markets.
Planned Building Acquisitions plan on purchasing buildings which can benefit from long-term pet owner demographic growth, population expansion and advancements in veterinary medicine. We believe that investing in quality veterinary medical facilities presents an excellent opportunity for investors looking for attractive returns with minimal market volatility.
Terravet REIT will invest in high-quality veterinary medical property that is well positioned for future growth of pets and their owners, such as proximity to markets and transportation links, qualified veterinarians/employees/staff attracted by location, adaptability to changing pet owner needs over time, etc. Our highly experienced team of investment and operations professionals led by senior leadership with expertise in the veterinary real estate sector will oversee management.
Terravet REIT will acquire, invest and manage veterinary and niche healthcare real estate through Terravet OP LP via a national platform. The REIT will prioritize properties occupied by veterinarians on long-term lease terms (typically 10+), or those with proven patient outcomes or those which could undergo significant renovations to enhance patient safety and experience.
Listen back to Peter Kilkelly’s interview on GeniusVets’ Veterinary Industry Insiders series from April 6th for more insight into terravet real estate! It was originally broadcasted as part of GeniusVets’ series GeniusVets Insiders series.