National Healthcare Properties Advances $528M Exit From Outpatient Medical Real Estate

National Healthcare Properties has completed the first phase of a large-scale reduction in its outpatient medical real estate holdings, selling 30 primarily multi-tenant medical facilities for approximately $198 million.

The transaction is the first closing under the REIT’s previously announced agreement to sell 86 outpatient medical facilities for approximately $528 million. The remaining 56 properties are expected to close during the fourth quarter of 2026, subject to debt assumption and customary closing conditions.

The initial sale generated approximately $79 million in net cash proceeds before transaction expenses and other adjustments. National Healthcare Properties also repaid two secured term loans totaling approximately $119 million, including about $60 million of debt tied to outpatient properties that are not part of the 86-building portfolio being sold.

For the remaining properties, the buyer is expected to assume approximately $220 million in secured debt. When the overall portfolio sale was announced in May, National Healthcare Properties said the transaction involved approximately $278 million of debt that would either be transferred to the buyer or defeased.

The disposition represents a significant strategic shift for National Healthcare Properties. Rather than maintaining the same level of exposure to outpatient medical buildings, the company has been repositioning its portfolio toward senior housing operating properties, or SHOP assets. Management has described the strategy as an effort to increase its concentration in needs-based, private-pay senior housing while strengthening the company’s balance sheet.

The scale of the transaction also illustrates how institutional healthcare real estate owners continue to use portfolio sales as a capital-recycling tool. In this case, National Healthcare Properties is simultaneously reducing medical office exposure, eliminating secured debt and redirecting capital toward a different segment of healthcare real estate.

Source: Realty Wire