GI Partners and former executives at Healthcare Trust of America are teaming up to launch UDLR Healthcare to invest in medical outpatient buildings. UDLR’s initial property investment is expected to close later this month.

Healthcare Trust of America was the largest integrated owner and operator of medical office buildings in the nation last year, according to a press release. It merged with Healthcare Realty Trust in 2022. GI Partners usually focuses on life sciences, tech and healthcare properties.

UDLR Healthcare will be led by CEO Robert Milligan, who served as chief financial officer of HTA. Other HTA vets on the team include Olivia Waalboer, Austin Brooker, Jeff Spiller and Todd Sloan.

The company didn't provide details on its first deal.

The new venture aims to answer the growing demand for MOBs, particularly in the face of an aging population.

With the growth of the 55-and-older population in the U.S., due to longer life expectancy and better healthcare delivery, the demand for outpatient healthcare services is growing, according to JLL. Elders account for 30% of the U.S. population, and that number is expected to grow to 50%, or 46 million people, within the next decade.

"We believe we can leverage GI's extensive experience in scaling companies in specialized industries with the deep MOB expertise, relationships, and proven track record of UDLR Healthcare's executive team to create value in this critical sector," John Saer, managing director and head of real estate at GI Partners, said in a press release.

The company hasn't said what its key markets for investment are, but the mid-Atlantic and Sun Belt regions lead the nation in MOB performance by vacancy rates, hovering around 7.7% and 9%, respectively, according to Institutional Property Advisors. National MOB occupancy has stayed above 90% this year, reaching 92% in the second quarter, per JLL.

Despite headwinds across most office types, the MOB sector has more or less stabilized from its pandemic downturn, with vacancy staying between 8% and 10% since 2020, IPA reported.

The report says that since 2012, the sector has experienced consistent gains year-over-year due to favorable lease terms bringing in steady returns. Rent trends have limited turnover, and because demand in healthcare services isn't likely to decrease soon, the tenant base remains stable, drawing investors to the sector.