MedVest is building a healthcare real estate fund focused on medical offices, clinics, and outpatient facilities. This document outlines the strategy and market thesis behind the fund. MedVest is still in capital formation, so this page should be read as strategy context rather than current operating results.
$4.5T
U.S. Healthcare Spending
Annual, growing 5.4% CAGR
73M
Baby Boomers
10,000 turning 65 daily
8.4%
Avg. Annual Return
Healthcare RE (10-yr)
Section I
Healthcare real estate is one of the most resilient and growing asset classes in commercial property. Four structural tailwinds underpin our conviction.
Healthcare expenditure is non-discretionary. During the 2008–2009 downturn, U.S. healthcare spending grew 4.4% while the broader economy contracted. Medical office vacancy remained below 8% — roughly half the rate of conventional office.
The 65+ cohort will reach 80 million by 2040, consuming 3× more healthcare services than younger adults. This structural shift ensures rising demand for outpatient facilities, clinics, and medical offices for decades.
Unlike retail or office, healthcare facilities cannot be disrupted by e-commerce. Patients require in-person diagnostics, procedures, and consultations — anchoring demand to physical real estate.
Procedures are rapidly shifting from hospitals to lower-cost outpatient settings. Ambulatory surgery volume is projected to grow 6% annually, creating sustained demand for the very properties MedVest acquires.
Section II
We target properties with established healthcare tenants in growing metropolitan areas with favorable demographics and healthcare employment density.
Multi-tenant physician offices near hospitals and health systems
Primary care, specialist, and multi-specialty group practices
Same-day surgical facilities performing elective procedures
Walk-in clinics with established operator tenants on long leases
Acquire
Identify undervalued healthcare properties with below-market rents or deferred maintenance
Improve
Upgrade facilities, enhance tenant services, and optimize property management operations
Stabilize
Increase occupancy to 95%+, extend lease terms, and grow net operating income
Section III
Our income engine is built on triple-net leases — the gold standard for predictable, low-overhead commercial real estate cash flow.
Lease Structure
Triple-Net (NNN)
Tenants pay taxes, insurance & maintenance
Avg. Lease Term
7–10 Years
With 2–3% annual rent escalators
Target Occupancy
95%+
Diversified across health systems & physician groups
Distribution
Quarterly
Net rental income paid to unit holders
Under NNN lease structures, tenants are responsible for the three primary operating costs that typically erode landlord returns:
Property Taxes
Paid by tenant
Building Insurance
Paid by tenant
Maintenance & Repairs
Paid by tenant
Section IV
MedVest targets an annual yield of 6–8% from net rental income, distributed quarterly to unit holders. The table below illustrates projected annual income at various investment levels.
$25 per MedVest Founding Unit
Capital formation stage · Illustrative yield examples only · Distributions not guaranteed
Section V
All investments carry risk. Prospective investors should carefully consider the following factors before investing.
Real estate values may decline due to economic, local market, or sector-specific conditions.
Healthcare tenants may fail to meet lease obligations, reducing rental income.
Rising rates can increase borrowing costs and compress property valuations.
Real estate investments are inherently less liquid than publicly traded securities.
Healthcare policy or reimbursement changes may affect tenant viability.
Past performance is not indicative of future results. Dividends are not guaranteed.
Review the fund thesis, structure, and risks, then decide whether a $25 Founding Unit makes sense for you. Distributions would begin only after successful acquisitions.