The Sanders Trust Makes $34M Acquisition

National medical real estate investment firm The Sanders Trust has purchased five medical office buildings in Wisconsin for $34 million.

Sanders Trust, whose vice chairman is former Green Bay Packers quarterback Bart Starr, bought the on-campus facilities in Appleton and Neenah, Wis. from ThedaCare TM. Starr, also a former University of Alabama quarterback, negotiated the purchase.

The five buildings are affiliated with the largest system in the northeast Wisconsin market. ThedaCare owns the number one market share in the eight-county area, Sanders Trust CEO Rance Sanders said. Sanders said the properties were attractive because they are on campus which generally produce stable occupancy patterns and higher rental rates.

"That is vital to us," Sanders said. "That's where the key physicians need to be located."

Sanders said Starr's knowledge of the area that is about 30 minutes from Green Bay prompted him to pursue the property. He said the area was not in the company's 10-state footprint but it has 390,000 residents. After reviewing the area's demographics and ThedaCare's regional dominance, Sanders Trust was one of a dozen companies to bid on the property, Sanders said.

Region's Bank provided the purchase capital. Sanders is confident in the stability of acquiring facilities on ThedaCare's campus.

"If you're partnering with the 800-pound gorilla you can feel your investment is secure," Sanders said.

Sanders Trust has developed or acquired property worth more than $265 million and has 20 properties currently valued at $135 million, according to a news release.