New Platform To Invest Up To $300M In U.S. Medical Facilities

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Health-care developer and investor Market Street Health Properties and Sixth Street, a global investment firm, have formed an institutional scale platform to invest up to $300 million initially in medical office buildings and facilities across the U.S.

Sixth Street’s investment is expected to support more than $1 billion of health-care properties and may be supplemented with additional equity commitments over time. The platform will exclusively pursue health-care real estate opportunities, including acquiring existing assets and building ground-up developments. It will also support the real estate initiatives of medical providers, with a focus on tenant-driven structures, including sale-leasebacks and build-to-suits.

The partners did not disclose markets they are targeting, but MSHP, a Newport Beach, Calif.,-based firm, primarily invests in the Northwest, Southwest and Southeast. The firm currently has multiple portfolio investments in California, Washington, Nevada, Florida, Michigan, Oklahoma and Missouri. Formed in 2010, MSHP has completed more than 80 ground-up developments and multiple core and value-add acquisitions involving a broad range of institutional and large-scale national organizations and publicly traded health-care service providers.

Neil Davis Wachsberger, a partner at MSHP, said in a prepared statement “The platform with Sixth Street is designed to accommodate unique deal structures with a focus on being nimble and highly creative. The firm has longstanding tenant relationships and the ability to deliver customized solutions for health-care properties across the nation.”

In addition to Wachsberger, MSHP is led by two other industry veterans, Charles Smyth and Sheldon Anderson. The three executives have more than 85 years of real estate and health-care development, construction and investment experience with significant expertise in the medical office sector.

Wachsberger said they are excited to partner with Sixth Street, a leading global investment firm with more than $80 billion in assets under management. Sixth Street Real Estate invests in properties and provides financing solutions across the full range of real estate asset classes, including niche assets. The firm’s real estate business invests up and down the capital structure including equity, preferred equity and debt. Founded in 2009, Sixth Street is headquartered in San Francisco, with offices in Boston, New York, Dallas, Houston, London and Luxembourg.

 

Source: Commercial Property Executive

Newmark Completes Sale Of 156,000SF One Mockingbird Plaza In Dallas

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Newmark announced the sale of One Mockingbird Plaza, a recently renovated, 156,104-square-foot office located in Dallas’ dynamic Medical/Love Field District. Newmark Vice Chairmen Chris Murphy, Gary Carr, Robert Hill and Director Chase Tagen represented the seller, TXRE Properties.

One Mockingbird Plaza is prominently located along Mockingbird Lane, east of I-35E and is within five minutes of Dallas Love Field and flagship campuses for UT Southwestern Medical Center, Parkland Memorial Hospital and Children’s Medical Center. The recently renovated, eight-story office building includes a modernized lobby, conference facility and fully equipped fitness center. The adjacent three-level parking garage offers convenient structured parking. One Mockingbird Plaza is 94 percent leased to a diverse base of tenants.

“One Mockingbird Plaza’s appeal is driven by its recently completed renovations, strong in-place cash flow and location within Dallas’ premier emerging marketplace and developing life sciences cluster,” said Murphy. “In addition to its three major medical campuses, the surrounding area has received significant national attention from major life science tenants and investors, alike.”

The Dallas Medical/Love Field District houses seven hospitals and teaching institutions, employs more than 37,000 people and attracts nearly three million patients annually. The district includes major flagship campuses of UT Southwestern, which ranks among the world’s top academic medical centers; Children’s Health, the leading pediatric healthcare system in North Texas and one of the largest pediatric healthcare providers in the U.S. and Parkland Health & Hospital System, one of the largest public hospital systems in the country.

 

Source:  Market Screener

Healthcare Realty Trust Looks To Sell $1.1B In Assets

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As part of its pending-yet-imminent merger with Healthcare Trust of America Inc., Healthcare Realty Trust Inc. is currently under contract with five counterparties to sell or joint venture 27 properties totaling $807 million.

For a subset of these properties valued at a total of $673 million, the counterparties have secured their investment committees’ approval or due diligence periods have expired. These transactions are expected to close within 10 days of the completion of the merger, which is expected on or around July 20. The rest of the properties under contract are scheduled to close by the middle of August.

As had been announced previously, the merger consideration includes a stock exchange ratio of 1:1 and a special cash dividend of $4.82 per share to HTA shareholders, totaling $1.1 billion.

HRT expects to fund the $1.1 billion dividend through the above-mentioned $807 million in asset sales and joint venture transactions, as well as 10 properties under letter-of-intent with three counterparties for $295 million, all at a blended cap rate of 4.8 percent.

HRT further announced that it “is also in active discussions with multiple counterparties regarding the sale of additional properties valued at more than $600 million at similar cap rates.”

The asset sales, HRT reported, “refine its portfolio by increasing the percentage of on-campus properties and improving the percentage of properties in top 100 MSAs….”

In a prepared statement, HRT President & CEO Todd Meredith said that with these transactions, the company has secured funding for the special cash dividend at an attractive cost of capital and that it expects to continue to positively shape the combined company’s portfolio and source accretive capital through more asset sales and joint venture investment.

An HRT spokesperson confirmed to Commercial Property Executive that the combined company will keep the Healthcare Realty name and continue to trade under its NYSE symbol (HR).

Finally, HRT stated that it expects to form a new joint venture with CBRE Investment Management. Initially, HRT plans to contribute four former HTA properties, while retaining a 20 percent interest in the joint venture and managing and leasing the properties.

In late 2020, HRT entered into a 50-50 joint venture agreement with TIAA to invest in medical office properties at the pace of about $200 million a year.

And in April of last year, HRT purchased a 57,600-square-foot medical office building in Laguna Hills, Calif., from Meridian for $31.3 million.

 

Source: Commercial Property Executive