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AEW JV Acquires Eight Medical Buildings In Seven States Across The Southern And Midwestern U.S.

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A joint venture between AEW Capital Management and Flagship Healthcare Trust have completed the acquisition of eight medical buildings totaling 145,561 square feet in seven states across the Southern and Midwestern U.S. in a series of compounding transactions.

The purchase was financed through a loan by Fifth Third Bank, who had secured a senior credit facility for the buyers. Following the acquisition, Flagship will provide property and asset management services for the portfolio.

The facilities, which consist entirely of ambulatory surgery centers, are located in Texas, Arizona, Michigan, Illinois, Missouri, Tennessee and Florida. Nearly all of the tenants leasing space within the portfolio specialize in health care, with three quarters of them in top five national surgery centers and health systems.

Two of the properties in the portfolio include the Kleimen Evangelista Eye Center, located at 350 E Interstate 20 in Arlington, Texas, and the Joliet Surgery Center, located at 998 129th Infantry Dr. in Joliet, Ill.

The Kleiman Evangelista Eye Center was built in 2015, and was previously owned by the Inland Real Estate Group, who had purchased it in 2017, according to CommercialEdge information. The property totals 27,500 square feet and is fully occupied by a leading Texas ophthalmology provider. Situated the Interstate 20 highway, the facility can be quickly accesses by patients throughout the suburbs of Arlington, as well as the larger Dallas-Fort Worth area.

Fifth Third Bank Executive Managing Director Michael Perillo oversaw the financing of the transaction.

The Medical Office Mires

Health-care and life science facilities remain a resilient commercial real estate investment, with investors eager to get their hands on these properties. The sector recorded more than $2.9 billion in transactions in the second quarter of 2022, according to data from a report from the Brown Gibbons Lang & Co. While that marks a slight decrease from the $3.3 billion in the same period of 2021, it significantly outranks activity in other office markets.

Market Street Health Properties and Sixth Street recently created a platform to invest $300 million in medical office buildings around the nation.

 

Source: Commercial Property Executive

AEW, Cypress West JV Buys Four-Property Medical Office Portfolio In Florida

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Newmark announced it advised on the sale of a four-property, medical office portfolio on behalf of Miami-based PrimeMed Realty, LLC (“PrimeMed”).

The portfolio totals 96,395 rentable square feet of medical office and ambulatory surgery center space located throughout the Greater Orlando and Miami areas of Florida. The properties were leased to a diverse roster of health system, physician group and specialty care provider tenants. Two of the properties are strategically located adjacent to leading health system acute-care hospital campuses.

Newmark’s Healthcare Capital Markets group, including Managing Director John Nero, Senior Managing Directors Michael Greeley and Jay Miele, Executive Managing Director Ben Appel, and Associates Ron Ott and Adam Goss, in cooperation with Vice Chairman Todd Perman, led the portfolio sale execution on behalf of the seller, PrimeMed. In addition, Newmark’s Boston-based Debt and Structured Finance group procured acquisition financing for the buyer, a joint venture between Boston-based AEW Capital Management and Cypress West Partners.

“We commend PrimeMed on the aggregation of a high-quality portfolio, which generated significant investor attention and interest given its alignment with leading healthcare providers and significant concentration within high-growth and attractive Florida markets,” said Nero.

“We were pleased with the market’s response to the portfolio investment opportunity and are excited to realize a successful transaction for PrimeMed and our investors through Newmark’s execution of a competitive process, led by John Nero,” concluded Chris Montello, Co-Founder of PrimeMed Realty, LLC.

 

Source: Newmark