New health care REIT sets up shop on West End

CapStone Capital alums land $151M in initial private offering

Two local health care realty veterans have teamed up to start MedEquities Realty Trust, a West End-based REIT.

In July and August, MedEquities completed an initial private placement of almost $164 million of common stock, landing net proceeds of about $151 million.

Co-founders John McRoberts and William Harlan previously founded Capstone Capital Corp., a health care REIT that went public in 1994 and was sold to West End-based Healthcare Realty Trust in 1998. The pair also held leadership and consulting roles at Carter Validus Advisors, among other health care ventures.

Already, the company has closed on a number of acquisition and loan transactions with Vibra Healthcare, an operator of more than 50 freestanding facilities in 18 states, and Fundamental Healthcare, an operator of 78 facilities in nine states.

The Vibra deals, which include a hospital purchase and leaseback and two loans, total $79 million. The company has also spent $40 million in two facility purchases and leasebacks with Fundamental Healthcare.

"With the long-term relationships we have established in the health care industry, we have been able to quickly source and fund attractive new growth opportunities with strong operators such as Vibra Healthcare and Fundamental Healthcare," McRoberts, MedEquities' CEO, said in a release. We look forward to working with these and other health care services companies to help meet their growing capital needs."