Acquisition Strategy

Property Selection Criteria:  ADR has focused on medical office buildings located adjacent to or very near hospital campuses because of the type of tenants in these buildings and the stability that we believe they bring to a property's net operating income (NOI).  Historically, doctors and dentists have benefited from being near active hospital campuses and are often affiliated in some way with these hospitals.  In our opinion, these tenants are unlikely to move to new locations because of the vocational economics that would be compromised by such relocation. It is a benefit for many medical related tenants to be adjacent to or near hospitals.  Additionally, medical tenants often have specialized tenant improvements and medical equipment that make moving more difficult and expensive.  Furthermore, doctors, dentists and other professionals tend to be highly educated, and well advised by financial planners, accountants and attorneys.  


Geographic Market Selection Criteria:  Behind every ADR acquisition is a strong demographic story.  ADR believes the aging of America's baby boom generation will only strengthen the demand for health care services and facilities.  The number of Americans age 65 and older is expected to double to 71 million by 2030, ultimately accounting for 20 percent of the U.S. population.  This demographic trend will likely be accelerated in the sunshine states of the Southwest, Southeast and the West Coast.  
In addition to strong demographics, ADR focuses on regions and submarkets where high barriers of entry for new products such as zoning, permitting and other local land use restrictions keep the supply of new, competitive properties low.