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Big Sky Medical Gets Rezoning Approval For Dallas MOB

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Big Sky Medical has received the approval from the Dallas City Council for the rezoning of the roughly 145,000-square-foot Pyramids South Tower, which can now include medical tenants within the property.

The adjacent Pyramids North Tower was rezoned to medical use in 2005 and is currently occupied by Baylor Scott & White and Dallas Plastic Surgery Institute.

Big Sky Medical acquired the two-building property near dowtown Dallas last year in October for an estimated $55 million from Healthcare Realty. The asset was described at that time as the largest medical office property to change hands in the U.S. since 2018. The purchase was made through Big Sky’s partnership with Bahrain-based GFH Financial Group.

The Pyramid Towers encompass a total of nearly 300,000 square feet and are set to become one of the largest medical complexes in North Texas. Pyramids South Tower is a six-story Class A building which was completed in 1998 and features three passenger elevators, controlled access and offers 730 car parking spaces. Managing Director Russ Johnson and Senior Vice President Chris Wright with JLL will handle the leasing services at the property.

Located at 9101 N. Central Expressway, Pyramid Towers are less than 10 miles from downtown Dallas. medical facilities in the surrounding area include Texas Health Presbyterian Hospital Dallas, SMU Health Center and First Baptist Medical Center, among others.

Big Sky Medical recently made another purchase in the Dallas-Fort Worth market. The company acquired Richardson Medical Center I, a 118,472-square-foot medical office building in Richardson. The property’s repurposing to medical office use began this year.

 

Source: CPE

Big Sky Secures $190M Financing For Ten Healthcare Properties Across Four States

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JLL Capital Markets just announced that it has arranged approximately $190 million acquisition financing for ten healthcare properties totaling 857,779 square feet.

JLL worked on behalf of the borrower, Big Sky Medical Real Estate, in securing the five-year, floating-rate loan from a bank syndication led by Capital One Healthcare.

“Despite a challenging environment, our team and JLL persevered and successfully syndicated this loan to close out a successful 2022 for Big Sky’s partnership with GFH,” said Jason L. Signor, founder and CEO of Big Sky Medical. “We value our relationships with Capital One and the syndication group.”

The properties, which are collectively 87% occupied, serve a wide range of healthcare uses, including outpatient medical office buildings, ambulatory surgery centers, diagnostic imaging centers and more. The portfolio includes:

• Pyramids North, 9201 North Central Expressway, Dallas, Texas
• Pyramids South, 9101 North Central Expressway, Dallas, Texas
• Providence Park, 2501 Earl Rudder Freeway, College Station, Texas
• Greenpark MOB, 7515 Main St., Houston, Texas
• Peninsula Orthopedic Associates, 1675 Woodbrooke Dr., Salisbury, Maryland
• Tidal Health Cardiology, 400 Eastern Shore Dr., Salisbury, Maryland
• Pelican Professional Center, 42388 Pelican Professional Park, Hammond, Louisiana
• Texas A&M Health Science Center, 8441 Highway 47 West, College Station, Texas
• Peak Surgical Center, 610 North Coit Road, Richardson, Texas
• Valley Ortho & River Surgical Institute, 609 East Orangeburg Avenue, Modesto, California

JLL’s 2022 Healthcare and Medical Office Perspective highlights that patients are moving to sunbelt states and retirement markets such as Texas, Louisiana and California at exponential rates creating more demand for medical office buildings. As a result, medical office occupancy has ticked upwards as demand intensifies in a moderate construction environment which has gradually increased rents for the 11th quarter in a row.

The JLL Capital Markets team representing the borrower was led by Managing Directors Timothy Joyce and John Chun and Director Anthony Sardo.

“We are thrilled to have the opportunity to work with the Big Sky Medical team to help capitalize this outstanding portfolio of medical office assets in diverse, high growth markets. We would like to thank the lenders for stepping up in a challenging environment and providing a great debt package for these acquisitions,” says Joyce.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

 

Source: JLL

Ardent Health Portfolio Of 16 Fully Occupied MOB Properties For Sale In Texas

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Jones Lang LaSalle Americas, Inc. is offerring for sale The Ardent Health Medical Office Portfolio, a unique opportunity to invest in over 762,000 square feet of medical office buildings leased by partnerships between Ardent Health Services, a leading national private for-profit integrated healthcare provider based in Nashville, Tennessee, and two market-leading academic health systems, The University of Texas Health Science Center at Tyler and The University of Kansas Health System.

The institutionally-managed Portfolio consists of 16 fully occupied properties in Texas and two in Kansas. Upon sale, the Portfolio will be 100 percent leased under new absolute net master leases with substantial 12 years of term and contractual annual rental escalations of two percent, offering durable in-place cash flows and growth in income.

The Portfolio features 13 buildings on hospital campuses representing 91 percent of the rentable area of the Portfolio. The underlying occupancy is nearly 100 percent and the health systems directly occupy 80 percent of the Portfolio net rentable area.

Each of the properties represents strategic on and off-campus locations featuring mission critical infrastructure and a variety of critical medical uses. The Portfolio offers desirable scale to investors in concentrated geographic patient service areas.

The properties are a combination of leasehold interests in campus locations with long-term ground leases and fee simple interests in community locations. The Portfolio will be delivered free and clear of mortgage encumbrances to the purchaser.

Investment Highlights

INSTITUTIONAL-QUALITY MEDICAL OFFICE PORTFOLIO
• 100% leased featuring 80% direct health system tenancy – fully occupied buildings
• 91% of rentable square feet concentrated on campus
• Portfolio comprised of nine single-tenant and nine multi-tenant buildings
• Institutionally managed by a highly regarded and experienced health system owner-operator, Ardent Health Services

SCALE IN MEDICAL OFFICE
• Exceptionally rare opportunity to acquire a large scale, institutional medical office portfolio with a single healthcare system comprised of 762,780 rentable square feet across 18 properties
• Geographic concentrations in Texas and Kansas
• Average building size over 40,000 square feet

ALIGNMENT WITH LEADING HEALTH SYSTEMS
• 100% master leased by affiliates of UT Health East Texas and KU Health-St. Francis
• UT Health Tyler and KU Health – St. Francis enjoy 39% and 26% inpatient market shares, respectively
• 80% direct health system occupancy across the Portfolio
• Strategic outpatient strategies for each health system or third-party provider groups
• Opportunity to partner and strengthen relationships with Ardent Health Services and its premier academic health system partners, The University of Texas Health Science Center at Tyler and KU Health

HIGHLY STABLE INCOME STREAM
• Absolute net lease structures and contractual rent escalations provide predictable and growing income stream with no capital requirements
• High probability of renewal in-place with strategic locations and critical infrastructure
• No tenant termination rights
• Modest in-place rents allow for consistent NOI growth across the Portfolio and a favorable basis for investors

 

Source: HREI