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CL Big Sky Medical Access Fund

The Big Sky Medical Fund purchases long-term net leased medical office buildings in select southern markets, focusing on single-asset purchases. We invest in medical properties that fall into a market “sweet spot” most buyers can’t access. Individual properties are too large for typical 1031 investors and too small for major institutions. By buying these assets at attractive prices and building a larger, diversified portfolio, we seek to unlock additional value that individual deals alone can’t achieve.

Overview

This Fund strategy involves purchasing core plus and value add medical focused buildings in an open-ended fund structure to generate income and growth.  The Fund is targeting buildings on or near operating hospital campuses with mostly NNN leases. 

Capitalization rates have risen to an average of 6.4% for target acquisitions. Debt costs for fixed-interest-rate loans on medical assets are now lower than cap rates, creating positive leverage. 

The open-ended structure enables the fund to focus on maximizing cash flow without a specific deadline for selling assets.  The Fund will have a 4-year hold period for investors with annual redemption windows after 4 years.  

Value Proposition

  • Value-Add Returns for Core Plus Risk
  • Displaced Pricing in the Middle Market
  • Diversification from Traditional Real Estate Investing
  • First five acquisitions are in Texas

Target Returns

  • Estimated IRR of 13% - 19%*
  • Estimated MOIC of 1.7x - 2.2x*
  • Current income estimated to be 6% - 7%*
  • Income is paid quarterly 

(Assumes a 5-year hold)

* There is no guarantee that the target returns will be achieved, and actual returns and performance may be materially different than the target returns. **For more detailed terms, please contact us to receive the PPM.

MOB (Medical Outpatient Buildings)

Medical Outpatient Buildings have historically had a high average occupancy rate of 93% in Q4 of 2024 and have consistently outpaced traditional office buildings.  Medical buildings and outpatient facilities are well-positioned to generate consistent cash flow growth, as their fundamentals have historically shown low correlation with economic conditions and align with the accelerating structural changes transforming the US healthcare system.  

  • Healthcare expenditure sustained growth through each of the last three economic downturns (2001, 2008, 2020).

As outpatient facilities have grown, so has the medical office building (MOB) sector. 

The aging U.S. population directly affects healthcare demand.  

  • The elderly utilize healthcare well in excess of younger people
  • The U.S. population aged 65 and older is projected to increase from 56.1M to 94.7M between 2020 and 2060. 
  • The 85+ population is expected to triple, from 9.1M to 26.5M, between 2020 and 2060.

About Big Sky Medical

Since 2004, the principal of Big Sky Medical, through his investment platforms, has invested nearly $3 billion into healthcare real estate assets totaling almost nine million square feet in 26 states through 63 direct investments and three separate discretionary funds.

Since 2021, Big Sky Medical has grown NOI for its portfolio of 44 medical assets at a weighted average compounded annualized growth rate (CAGR) of 5.3%.

  • Big Sky Medical's historical default rate is < 0.4%.      
  • Big Sky Medical's historical renewal rate is > 93%
  • Big Sky Medical's historical NOI growth is 5.1%  

To date, 78% of Big Sky Medical's acquisitions have been secured "off-market", underscoring the strength and depth of their industry relationships. 

Learn more about this Offering

To learn more about this investment opportunity, please complete the form below to receive more information. You will receive a call from our team to address any questions you may have.