Hammes Partners Raises $445M for Health-Care Real Estate Fund
The open-ended investment vehicle significantly surpassed its $350 million target.
Hammes Partners has closed its first open-ended vehicle, raising $445 million in equity commitments from a diverse base of new and returning institutional investors for its new core-plus health-care real estate platform. The firm significantly exceeded its $350 million target.
The Milwaukee-based firm, an institutional investment management firm focused on the U.S. health-care market, plans to continue to scale its core-plus platform over time. The new initiative will focus on investments in health-care facilities that have resilient and predictable cash flows. The platform will target high-quality, highly stabilized, well-positioned facilities that are integral to the real estate footprints of leading health-care providers. Hammes Partners investments have included existing assets, entitled development projects and adaptive reuse opportunities.
Hammes Partners has already made investments in this new open-ended, core-plus investment vehicle. Details about the investments were not disclosed.
Alston & Bird LLP served as legal counsel in the formation of the fund.
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In March 2022, Hammes Partners closed its third closed-end fund, Hammes Partners IV, with $739 million in capital commitments. The oversubscribed fund achieved its hard cap within seven months of its launch, receiving strong support from existing investors and consulting relationships, and substantial interest from a diverse base of new investors. Hammes Partners IV invested in acquisition and development opportunities in U.S. health-care real estate.
Earlier transactions
In March, Hammes Partners acquired Tosa Health Center, a 100,977-sqare-foot Class A medical office building in Wauwatosa, Wis., a Milwaukee submarket. Montecito Real Estate sold the property to Hammes Partners for $52.5 million, according to Yardi Research Data. CIBC Bank provided a $29 million acquisition loan for the asset, a three-story building at 1155 N. Mayfair Road. The property was originally built in 1998 for Medical College of Wisconsin and later expanded to accommodate the sole tenant’s growth. Located on 5 acres, the property is within 3 miles of several hospitals such as Froedtert Mount Saint Francis on the Lake and Aurora Health Care.
Hammes Partners purchased Hudson Medical Center, a 160,000-square-foot medical office building in Hudson, Wis., within the Twin Cities market, in January 2024 from Hudson Medical LLC. The property at 2651 Hillcrest Drive was built with the help of a $42.8 million construction loan and delivered in 2023.
The firm provides services through a network of regional offices across the U.S. Hammes Partners is complemented by the suite of services offered by its affiliates, including Hammes Healthcare, which provides consulting and project delivery services, and Hammes Realty Services, which offers comprehensive property management services.
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