90
TRANSACTIONS
Small businesses the next big thing in real
estate investment
By Laura Dyrda
S
mall businesses, including physician
offices, are the new targets for real
estate investors, according to e Wall
Street Journal.
Property investors traditionally steered clear
of properties housing small businesses be-
cause they are riskier; it's more likely small
businesses than big chains will shut down or
stop paying rent, according to the Journal.
But a new breed of investors are seeing big
opportunities in buying up single-tenant
properties where tenants agree to share
more information with landlords and
prices are typically lower. Keyway, a New
York City-based firm, is focused on buying
medical office buildings and leasing them
back to physicians, which have a lower risk
of vacancy than restaurants or retail stores,
according to the report.
Keyway has bought around $50 million
worth of properties since its founding in
2020 and is in talks to spend another $200
million.
Montecito Medical Real Estate has also built
a strategy around acquiring medical office
space, with recent transactions includ-
ing a $12 million building in Chesterfield,
Va., and a $21 million building in Virginia
Beach, Va., housing both an orthopedic and
gastroenterology practice. n
28
th
Annual Meeting
THE BUSINESS AND
OPERATIONS OF ASCs
October 27-29, 2022 // Swissotel // Chicago, Illinois
The best business-focused strategic discussions in the ASC industry.
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