Page 17 - The MarchLife Story

INVESTMENT
THESIS
Over the next few years, investment safety is paramount where downside potential in the slowdown of the overall economy may begin to surface. MarchLife California represents what investors are currently seeking: safety, performance in a low interest rate environment and high barriers to entry for future competition. The following points brie y explain how MarchLife California is not only a safe place to invest capital but also a space that outperforms other types of investments on a risk adjusted basis.
Demographics: Riverside County has faced a rapidly growing population and healthcare is one of the last services to establish itself. The future outlook is also strong as Riverside county will add nearly 2 million more residents in the next two decades.
Limited Competition: Nearby healthcare facilities are dated and lack the technological improvements necessary to address proper care. There are also no private rooms within a 10 mile radius and much of the local population go outside the county to receive care and studies have shown roughly 45% leakage.
Supply: Future supply is non existent outside the MarchLife California campus. Entitlements are dif cult to attain, especially for healthcare, so the development is approximately 10 years ahead of any competition.
Recession Resistant: Healthcare sector is relatively recession resistant with many high paying jobs. People will need healthcare no matter the market cycle and is one of the last discretionary items a household will cut back on.
Credit Tenants: Healthcare is provided by massive organizations with high credit ratings. The rst MOB will be a build-to-suit and the hospital will be operated by a large provider thus reducing the overall risk of the investment.
Diversification: MarchLife California will provide investors exposure to a variety of healthcare assets in a city with one of the fastest growing populations on the west coast.
Physician Partnership: MarchLife California has partnered with Riverside Medical Clinic, which controls 40% of the healthcare services in Riverside County, to populate the hospital positions and admit patients. Further, RMC will be occupying an adjacent 120KSF MOB. RMC is the largest private physician group in California and motivated to expand operations further in Riverside County.
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