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

HCA Florida Lawnwood Hospital Opens $100M Tower In Fort Pierce, Florida

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HCA Florida Lawnwood Hospital in Fort Pierce, Fla., just hosted a ribbon cutting ceremony to celebrate the opening of a new $100 million tower.

The four-story tower has 32 medical/surgical beds. Additionally, the project expanded pre-operative and recovery areas and added three operating rooms.

The third and fourth floors are shell space for future growth.

 

Source: healthcare design

Big Sky Medical Closes $251M Buying Spree Of Medical Office And Life Science Buildings Across Six States

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In a series of successive deals, Big Sky Medical Real Estate has purchased 13 medical office and life science buildings across Texas, Florida, Wisconsin, New Jersey, Pennsylvania, and Michigan for a combined $251.4 million, public records show.

BMO Harris Bank provided $189 million in acquisition financing, according to CommercialEdge data.

The company paid $64.5 million for a 149,000-square-foot medical office building in West Bloomfield, Mich. Seavest sold the 1985-built property located at 6900 Orchard Lake Road. Bloomfield Cardiology, Michigan Institute of Urology and Orchard Pediatrics are tenants at the building, among others.

Other major acquisitions include Spectra Labs, a 204,500-square-foot life science building in Rockleigh, N.J., sold for $50.5 million by Charter Realty Group. In another transaction, Big Sky paid $39 million to Retina Consultants of Houston for a 52,825-square-foot medical office building in Bellaire, Texas.

Another $39 million went toward the purchase of a 60,000-square-foot property in Brandon, Fla. Harrod Healthcare Real Estate sold the medical office building that came online in 2019 at 515 S. Kings Ave. Women’s Care, one of the region’s dominant multispecialty health practices, is the facility’s only tenant. JLL brokered the transaction on behalf of the seller.

A few months ago, Big Sky Medical formed a partnership with an institutional investor with the intention to acquire $1 billion worth of medical office assets across the U.S. The new investment vehicle was seeded with a $400 million portfolio that Big Sky had amassed in the past 12 months.

 

Source: Commercial Property Executive