National Healthcare Properties Plans Medical Office Exit With $531 Million Portfolio Sale

National Healthcare Properties is preparing to redirect its investment capital toward senior housing, with a pending $531 million sale of 40 outpatient medical facilities representing a substantial step in that transition. Announced September 28, the agreement is expected to close in the fourth quarter of 2026, subject to customary closing conditions. The buyer was not disclosed.

The proposed sale is part of a broader disposition program covering the REIT’s entire outpatient portfolio. Earlier this year, NHP agreed to sell 86 facilities for approximately $528 million. Thirty of those properties closed on September 10. A separate, nonbinding letter of intent covers its remaining four outpatient facilities for an anticipated $11 million in gross proceeds. Completion of all three transactions would end the company’s ownership of outpatient medical properties.

NHP has already paid off the secured debt associated with the 40-property portfolio. It anticipates approximately $511 million in cash proceeds after certain adjustments but before transaction expenses and property operating prorations. The company plans to use the funds to reduce its revolving credit balance, purchase senior housing properties and support other corporate needs.

The company’s acquisition pipeline illustrates where that capital could go. Signed purchase agreements and nonbinding letters of intent encompass approximately $244 million in senior housing investments, totaling 724 units primarily serving assisted living and memory care residents. Those acquisitions remain subject to applicable due diligence, closing requirements and regulatory approvals.

The shift comes despite relatively high occupancy in NHP’s outpatient holdings. At the end of the second quarter, that portfolio was 93% occupied, although net operating income declined 2.4% to $20.4 million. Its senior housing portfolio was 84% occupied, with average monthly revenue per room increasing to $6,391 from $6,036 a year earlier.

For healthcare real estate investors, the transactions illustrate how portfolio strategy can drive medical property sales even when occupancy remains strong. NHP’s stated priority is to concentrate its capital and operations on senior housing as demand for specialized care grows with the aging population.

Source: Bisnow