DigitalBridge Group Agrees To Sell Wellness Portfolio For $3.2 Billion

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DigitalBridge Group Inc., the real estate investment trust led by Chief Executive Officer Marc Ganzi, agreed to sell its so-called wellness infrastructure portfolio of more than 300 facilities in a transaction valued at $3.2 billion.

The REIT is set to obtain $316 million in proceeds from the sale of the division, which includes senior housing and skilled-nursing facilities, hospitals and medical office buildings, to Highgate Capital Investments and Aurora Health Network, according to the newly released statement. Highgate and Aurora are set to assume about $2.9 billion in associated debt. Bloomberg News first reported the agreement earlier.

“We’re incredibly bullish about our ability to get the right price for that asset and, ultimately, find the right home for it,” Ganzi said on a second-quarter earnings call last month.

The REIT is working to rotate away from real estate sectors that were favored by its founder Tom Barrack and exclusively pursue digital infrastructure assets such as data centers, fiber networks and cell towers.

“There’s a path to finish the mission between now and the end of the year to get to 100% digital,” Ganzi said at a conference last month.

Boca Raton, Florida-based DigitalBridge, formerly known as Colony Capital, in June agreed to sell assets to Fortress Investment Group LLC. In March, it announced the completion of its sale of a hotel portfolio to Highgate and an affiliate of Cerberus Capital Management LP. Those transactions followed other divestitures including the sale of a stake in real estate investment firm RXR Realty as well as its warehouse portfolio.

DigitalBridge’s shares have gained 146% in the past 12 months, outperforming the Bloomberg U.S. Real Estate Large & Mid Cap Price Return Index, which rallied around 33% over the same period.

Highgate, led by Mahmood and Mehdi Kimji, has historically focused on hotels, its website shows. Its partner on the transaction, Aurora, led by Joel Landau and Leo Friedman, has been an owner-operator of skilled nursing facilities.

 

Source: Wealth Management

Southeast Gateway Medical Office Portfolio Sold

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CBRE U.S. Healthcare and Life Sciences Capital Markets iannounced the sale of the Southeast Gateway Medical Office Portfolio (the “Portfolio” or alternatively, the “Properties”).

Lee Asher, Chris Bodnar, Jordan Selbiger and Ryan Lindsley partnered with Morgan Hillenmeyer from CBRE Nashville Investment Properties and Patrick Gildea with CBRE Carolinas Investment Properties to act as the seller’s exclusive advisors.

The Portfolio consists of eleven (11) medical office properties located in some of the most desirable markets in the Southeastern US. The Properties are concentrated within the Atlanta, Nashville and Charlotte MSAs and benefit from the exceptional, high-growth demographic trends that define the region.

The Portfolio is 95% leased with a roster of tenants that is 69% composed of health systems and credit quality physician groups, representing a diverse mix of clinical specialties. Health system tenants within the Portfolio include Piedmont Healthcare (Moody’s ‘A1’), Northside Hospital, WellStar Health System (Moody’s ‘A2’), Emory Healthcare (Moody’s ‘Aa2’), Children’s Healthcare of Atlanta (Moody’s ‘Aa2’), Vanderbilt Health (Moody’s ‘Aa3’), TriStar Medical Group / HCA (Moody’s ‘Baa3’), U.S. Department of Veteran Affairs, Atrium Health (Moody’s ‘Aa3’), and Novant Health (Moody’s ‘Aa3’).

 

Source: HREI

World’s Largest Life Science Campus Launches In Texas

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Texas Medical Center has begun construction on the $1.8 billion first phase of the 37-acre megaproject.

Houston’s place in the U.S. and the world as a major life science cluster takes a big step forward as Texas Medical Center begins construction of the $1.8 billion first phase of a 37-acre, 6 million-square-foot life science campus known as TMC3.

Dubbed the world’s largest life science campus, the TMC3 master plan was designed by Boston-based Elkus Manfredi Architects, a key player in shaping several of the leading life sciences clusters in Massachusetts.

The TMC3 project expands on the more than 60 institutions and 100,000-plus employees already located at Texas Medical Center, the largest medical center in the world. William McKeon, TMC president & CEO, said in a prepared statement TMC3 extends the medical center’s collaboration to Fortune 100 life sciences companies and entrepreneurial ventures.

Phase One is backed by $1.8 billion in financing from leading life science investment and property development teams. It includes two buildings totaling 950,000 square feet—a 700,000-square-foot research facility and a 250,000-square-foot collaborative building developed by Beacon Capital Partners and their strategic partner Braidwell, a life science-focused investment firm.

The initial phase will also feature a hotel with more than 500 keys and 65,000 square feet of conference space; a 350-unit residential tower; more than 2,000 parking spaces and 18.7 acres of public space. Helix Gardens, part of the landscape design by Mikyoung Kim, will feature a chain of five public parks and a central garden for outdoor receptions, concerts, graduations and other large-scale events.

A Promising Future

Alex Karnal, co-founder & chief investment officer at Braidwell, said in a prepared statement TMC3 will be a model of how to empower an ecosystem of expertise at tremendous scale. In addition to its partnership with Beacon, Braidwell is expected to bring its expertise in making multi-stage life science investments to fuel growth of companies that will be operating on the TMC3 campus.

Noting it’s an unprecedented time for life sciences and innovation in the U.S., Steve Purpura, president of life science at Beacon Capital Partners, said in prepared remarks Houston has all the factors required for explosive growth in the life sciences space. He also credited TMC with seeding innovation, building relationships with the world’s largest life sciences companies and creating the infrastructure needed for long-term success.

TMC3 is expected to generate about $5.4 billion in economic growth for the state each year, including the creation of more than 23,000 new permanent jobs and about 19,000 construction jobs.

Other TMC3 campus collaborators include Majestic Realty, Transwestern Development, The University of Texas MD Anderson Cancer Center, Texas A&M University Health Science Center and University of Texas Health Science Center at Houston.

Another Houston Project

In February, Hines and 2ML Real Estate Interests released renderings of the 53-acre life science district in Houston known as Levit Green that will be adjacent to the Texas Medical Center. The mixed-use development’s first phase will include a 270,000 square-foot laboratory and office building as the centerpiece. The five-story building will include a 7,000-square-foot conference center; 5,800-square-foot fitness facility; café and restaurant space and an outdoor garden. Levit Green will eventually have more office components as well as residential, retail and hospitality space.