Programmatic Joint Venture And Recapitalization Announced Between Woodside Health And Heitman

Woodside Health and Heitman announce the recapitalization of a four-property, 315,000-square-foot medical outpatient portfolio, which is part of a $350m programmatic joint venture.

This recapitalization will seed the second joint venture between the Cleveland, Ohio-based medical office building acquisition and management firm Woodside Health, LLC  and Heitman LLC, a global real estate investment management firm.

The recapitalized assets comprise four properties located in Texas, Arizona and Nevada, totaling approximately 315,000 square feet. On average, the seed portfolio has 92% occupancy, 4.9 years of weighted average lease term, and a diverse mix of medical tenants.

The seed will provide stable cash flow, while offering some additional yield through lease-up and increasing in-place rental rates to market. The joint venture is actively pursuing multiple investment opportunities with a focus on medical outpatient assets that seek to meet value-add return objectives.

Started in 2008, Woodside Health has been one of the most active medical office buyers in the country. Over its 16-year history, the company has completed 59 acquisitions spanning eight states. Woodside is led by Principals Ben Barr, Joe Greulich, Ben Sheridan and Ted Barr as well as four key Vice President staff members.

“Our relationship with Heitman has been successful, and we are thrilled to establish a second venture to continue forward with our collective investment objectives,” states Ben Barr, Principal at Woodside Health, “We are pursuing multiple healthcare real estate properties and expect to close a few more before year end.”

Heitman has more than 20 years of experience investing in the medical office building sector and has been involved in the acquisition, development, and financing of nearly 280 assets valued at over $5 billion in gross value.[1]

“We are excited to expand our relationship with Woodside Health and to aggregate a medical office portfolio in markets poised for growth,” said Brian Pieracci, Head of Private Equity – North America at Heitman. “The joint venture focuses on markets with strong healthcare fundamentals, which we believe, should benefit from secular demand drivers, including an aging US population base and movement of medical services into outpatient settings.”

Source: HREI