Own the Real Estate Your
Practice Makes Valuable.

A limited partnership (LP) is a legal structure in which limited partners contribute capital and receive a proportional share of investment returns, while the general partner manages the investment and operations. In a medical office real estate LP, physician investors contribute capital as limited partners, and the general partner — in our case, Clinical Investment — sources, acquires, manages, and ultimately disposes of the medical office assets. Limited partners receive their pro-rata share of income distributions during the hold period and capital proceeds at disposition. The LP structure limits investor liability to the amount invested and provides pass-through tax treatment, meaning income and losses flow to investors’ individual returns rather than being taxed at the entity level.

The Physicians Fund focuses on three primary investment categories: stabilized net-leased medical office buildings with creditworthy physician tenants in established healthcare submarkets; sale-leaseback transactions in which physician owner-operators monetize their real estate equity and continue as tenants; and development co-investments in ground-up medical office and ASC projects from groundbreaking. Each investment category carries a different risk and return profile. Stabilized acquisitions offer current income with lower risk. Development co-investments offer higher return potential with longer timelines and development-stage risk. Sale-leasebacks combine real estate investment with physician relationship continuity and typically offer stable long-term income.

Medical office real estate investments offer several tax advantages relevant to physician investors. Depreciation — the non-cash deduction for the allocated cost of the building structure and improvements over their useful lives — reduces taxable income distributed to investors without reducing cash flow. Cost segregation studies can accelerate depreciation by reclassifying components to shorter depreciation lives, increasing the tax benefit in early years. Interest expense deductions on any acquisition-level debt further reduce taxable income. For physicians in high income tax brackets, these deductions can significantly improve the after-tax return on a medical real estate investment. We recommend consulting a tax advisor familiar with real estate partnerships to model the specific impact for your tax situation.

An accredited investor is an individual or entity that meets financial thresholds established by the Securities and Exchange Commission. As of the most recent SEC standards, an individual qualifies as an accredited investor by meeting one of several criteria: net worth exceeding $1 million excluding primary residence; annual income exceeding $200,000 (or $300,000 combined with a spouse or spousal equivalent) in each of the two most recent years with a reasonable expectation of the same in the current year; or professional certifications including Series 7, 65, or 82 licenses. Most attending physicians and physician practice owners qualify based on income. All Physicians Fund investment opportunities are available to accredited investors only. We verify accredited investor status as part of the subscription process.

Minimum investment amounts and projected returns vary by specific investment opportunity and are detailed in each offering’s subscription documents. As a general reference point, stabilized medical office acquisitions in our markets have historically generated total returns in the range of 8 to 14 percent annually (combining cash yield and appreciation) depending on asset quality, leverage, and hold period. Development co-investments target higher returns reflecting development-stage risk and illiquidity premium. These are projections based on underwriting assumptions — not guarantees. Medical real estate investments are illiquid, meaning capital is committed for the duration of the hold period, which typically ranges from 5 to 10 years. All material terms, projected returns, and risk factors are disclosed in detail in the offering documents provided to qualified investors.