Sila Zeros In On Healthcare With $1.3B Data Center Portfolio Sale

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With the sale of a 29-property data center portfolio, Sila Realty Trust is exiting the data center space to focus on healthcare.

Sila sold 29 data center properties to Mapletree Industrial Trust, a REIT listed on the Singapore Exchange, for $1.3 billion. The transaction will be completed in one or more closings during Q3 2021.

“This action marks another key step in Sila Realty Trust’s evolution to provide a clear path for the company to pursue a strategy as a pure-play healthcare REIT,” said Michael A. Seton, Sila CEO and president in a prepared statement.

Sila Realty Trust, previously known as Carter Validus Mission Critical REIT II, owned both data centers and healthcare assets before the sale.

As one example of the type of assets it seeks, last September Sila purchased Tampa Healthcare Facility, a 33,822 rentable square foot medical office building constructed in 2015. The building is located on 2.87 acres in Tampa, the second-fastest growing market in Florida and the twelfth-fastest growing market in the US. The facility, which was 100% net-leased to six tenants at the time of the sale, serves as a strategic location for both primary and urgent care, pediatric spinal care, clinical laboratory services and various types of outpatient surgery.

In the release announcing the sale, Seton said the company was focused on acquiring high-quality, well-located assets with a strong and diverse tenant roster.

“All of these attributes are indicative of our existing portfolio combination and we expect this property will serve as a strong complement to our growing asset base,” Seton said at the time.

It shouldn’t be a surprise that Sila is focusing on the medical sector. It has held up exceptionally well through the pandemic. While medical office buildings sales volume declined in 2020, it was much less of a drop than the other commercial real estate sectors, according to a report from Colliers.

MOB investment decreased 12.2% year-over-year in 2020 to hit $11.1 billion, according to Colliers, while cap rates fell 20 basis points to 6.5%. By comparison, commercial real estate posted a 32% decline in sales volume overall.

 

Source: GlobeSt.

$1B Mixed-Use Frisco Project To Include Medical, Wellness Uses

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Frisco City Council voted unanimously May 18 to approve a rezoning request that paves the way for a $1 billion mixed-use development east of the PGA Frisco project.

This rendering shows The Link, a nearly 240-acre mixed-use development planned in Frisco. (Rendering Courtesy: City Of Frisco)

The Link is estimated to generate $7 million a year in property tax revenue and $3 million a year in sales tax revenue once fully built out. The 2 million to 2.5 million square feet of office space would attract between 8,000 and 10,000 jobs, according to project estimates. And an untold number of other jobs would be created at the site for the restaurant, retail, hospitality, wellness, medical and entertainment uses planned there.

 “This project checks a lot of the boxes for Frisco,” said Council Member Will Sowell said. “Who wouldn’t want this development in their city?”

This map shows the location of The Link mixed-use development south of US 380 along Legacy Drive. (Courtes: City Of Frisco)

“The developers took an odd-shaped plot of land with a flood plain in the middle of it and created what is expected to be a world-class project,” said Mayor Jeff Cheney. “We’re sitting here today talking about potentially building a $1 billion development because of the halo effect of the PGA.”

The May 18 vote was the third time that the nearly 240-acre project had come before City Council. In two previous meetings, the project was tabled after some council members expressed concerns with density and the timing of the trail construction.

Frisco Development Services Director John Lettelleir presents plans for The Link to the Frisco City Council on May 18. (Screenshot Courtesy: City Of Frisco)

The approved plan has 150 fewer residential units than the original request. The plan allows for up to 2,206 multifamily units, at least 500 of which must use concrete and steel construction. The revisions also allow for up to 500 single-family and cottage homes.

In addition, the developers agreed to construct the 3.5-mile hike and bike trail during the first phase of construction. The trail must be completed before the first certificate of occupancy is issued.

Project representative Clay Roby called the trail “the heartbeat of the development” that will connect The Link to the resort-style development that will be the new home of the PGA.

“We’ve created … a large pedestrian promenade that goes through the center of the development, ensuring that it’s a very walkable mixed-use property,” said Roby, a managing director at Stillwater Capital.

“A lot of work went into the final plans for The Link,” said Council Member Shona Huffman. “We can’t let down our guard. We still have to push for better. And that’s what we did here tonight. I really do appreciate that the developer worked really hard with us to get better.”

“The council took a long-range view of the community in approving a project that will affect generations to come,” said Cheney. “This is a project we should be celebrating. This should be an exciting day in Frisco’s history.”

 

Source: Community Impact

Latest New York Transplant: $100 Million In Investments For South Florida Medtech Companies

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A torrent of venture capital money continues to stream into Miami.

Latest to join is Ceros Financial Services, a financial advisory group that is raising $100 million over the next 12 months to fund emerging medical technology companies in South Florida and beyond.

Ceros’ first investment is in a name familiar to many in Miami’s medical technology sector: Memic Innovative Surgery, a robot-assisted surgery company based in Fort Lauderdale and Israel that is chaired by Maurice R. Ferré. Ceros is leading a $96 million investment in the company, which plans to have as many as 200 employees in the coming years.

“We think it’s going to be a unicorn,” said Ceros co-founder Mark Goldwasser, referring to the tech term to describe a company worth at least $1 billion.

Goldwasser, who is moving to Miami from New York, and business partner Chris Dewey were early investors in Mako Surgical, which Ferré co-founded. Mako, a medtech pioneer, was acquired by Stryker Corp. in 2013 for $1.65 billion and helped kick off the current wave of Miami tech momentum.

“South Florida has the geography and demographics to be the next medtech hub,” Ferré, son of the former Miami mayor of the same name, said in a statement. He could not be reached for additional comment.

Ceros has already invested $65 million in the past 14 months in companies, including Dania Beach-based OrthoSensor, whose device provides real-time data during knee-surgery operations; Miami-based Dermasensor, which uses advanced technology to evaluate skin lesions for cancer; and Ferré’s current company, INSIGHTEC, which uses ultrasound technology for non-invasive brain surgery.

Goldwasser is scouting office space in Miami to headquarter Ceros.

“Ceros is looking to capitalize on Miami’s burgeoning tech, finance, and medical ecosystem, alongside its pro-business climate,” Goldwasser said. “Miami-area hospitals are hungry to grow and innovate. We’re seeing this huge wave here for economic reasons, lifestyle reasons — people my age, in their early 60s, are realizing they don’t need to be in New York anymore. You just need a laptop, tablet and a cellphone.”

Goldwasser most recently led National Holdings Corp., a New York-based parent corporation of several affiliated financial services companies.

 

Source: Miami Herald