The blockbuster deal is probably the largest non-merger MOB portfolio sale thus far in 2024. The price is based on information compiled by healthcare real estate data from Revista.
Harrison Street Real Estate Capital is set to acquire a portfolio of 24 senior housing communities for about $1.2B as it sells a medical office building portfolio of about half that size.
The senior living properties, which are mostly in California but also Nevada, are operated by Oakmont Senior Living. The portfolio totals 2,195 units that are mainly assisted living and memory care. The sellers are the Gallaher Cos. and Healthpeak Properties, which each own 12 properties in the portfolio.
The Healthpeak communities are on average 4 years old, with occupancies stabilized at 96% from 2016 to 2019, according to Harrison Street, adding that the Gallaher assets are recently built as well.
“The senior housing sector remained resilient throughout the pandemic and is poised for growth,” Harrison Street Global Chief Investment Officer Michael Gordon said in a statement. “Specifically, the assets we are acquiring are managed by a leading operator in Oakmont and located in attractive markets backed by solid demographics.”
Chicago-based Harrison Street in December raised $720M for a new fund that will focus at least partly on senior housing, Senior Housing News reports. The fund could raise as much as $2B. In February, Harrison Street bought 12 senior housing communities from Healthpeak for $312M.
Harrison Street also said it is selling a 14-property medical office portfolio totaling 833K SF for $371M. The properties, which are in Virginia, Illinois, Minnesota, New Jersey, Oregon, Texas and California, are held by Harrison Street’s core fund and U.S. opportunity funds.
Source: Bisnow
Healthpeak has not revealed the specific properties that were part of its 14-MOB portfolio acquisition. But in its “Q1 Earnings Release and Supplemental Report,” the cover photo caption states that the property shown, which HREI has determined to be 601 Watkins Centre Parkway in Midlothian, Va., occupied by Bon Secours Mercy Health, was acquired in April. The timing and health system affiliation are consistent with what the REIT reported about the transaction. (PHOTO CREDIT: Healthpeak)
In a significant deal that took place in recent weeks, Denver-based Healthpeak Properties Inc. on April 30 acquired a 14-property, 833,000 square foot medical office building (MOB) portfolio for $371 million.
News of the purchase surfaced in the Q1 earnings report recently released by the publicly traded real estate investment trust (REIT) as well as during the REIT’s May 5 earnings call with securities analysts, during which officials discussed certain aspects of the acquisition.
In its Q1 earnings report, Healthpeak notes that the deal was an “off-market” one and that the facilities are all on hospital campuses or are in off-campus locations but affiliated with “investment grade health systems.”
The MOBs, according to Healthpeak’s Q1 report, are heavily concentrated in the markets of Minneapolis, Chicago, Philadelphia, Washington, D.C., Los Angeles and Dallas.
Source: HREI
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