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Newmark Facilitates $72.7 Million Sale Of Medical Office Building Portfolio Spanning Four States

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Newmark announces the $72.7 million sale of a five building, Class A medical office building portfolio.

The 179,000-square-foot portfolio comprising outpatient medical office buildings and surgery centers spans four states—Pennsylvania, Connecticut, Georgia and Texas. Newmark represented the seller in the sale to a state pension fund.

Newmark Senior Managing Director Jay Miele, Executive Managing Director Ben Appel, and Senior Managing Directors John Nero and Michael Greeley of Newmark’s Healthcare Capital Markets group led the transaction, in cooperation with local licensees.

“This sale marks an important milestone in our ongoing advisory work with this client,” said Miele. “The opportunity to invest in strong institutional-quality assets in the healthcare real estate sector was attractive to buyers, especially given that industry-leading providers anchor the portfolio.”

At the time of the sale, the institutional-quality portfolio of properties was 99% leased overall, with a weighted average remaining lease term of 5.5 years primarily to leading health systems, credit tenants and dominant physician networks. Since 2018, portfolio ownership has eticulously maintained each asset’s best-in-class, high-end medical office finishes through over $4.5 million in capital improvements.

“The properties are anchored by market-leading health systems, with strong track records of providing mission critical services to the community and are therefore poised for continued growth and long-term success,” said Appel.

 

Source: HREI

Healthcare Realty Trust Looks To Sell $1.1B In Assets

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As part of its pending-yet-imminent merger with Healthcare Trust of America Inc., Healthcare Realty Trust Inc. is currently under contract with five counterparties to sell or joint venture 27 properties totaling $807 million.

For a subset of these properties valued at a total of $673 million, the counterparties have secured their investment committees’ approval or due diligence periods have expired. These transactions are expected to close within 10 days of the completion of the merger, which is expected on or around July 20. The rest of the properties under contract are scheduled to close by the middle of August.

As had been announced previously, the merger consideration includes a stock exchange ratio of 1:1 and a special cash dividend of $4.82 per share to HTA shareholders, totaling $1.1 billion.

HRT expects to fund the $1.1 billion dividend through the above-mentioned $807 million in asset sales and joint venture transactions, as well as 10 properties under letter-of-intent with three counterparties for $295 million, all at a blended cap rate of 4.8 percent.

HRT further announced that it “is also in active discussions with multiple counterparties regarding the sale of additional properties valued at more than $600 million at similar cap rates.”

The asset sales, HRT reported, “refine its portfolio by increasing the percentage of on-campus properties and improving the percentage of properties in top 100 MSAs….”

In a prepared statement, HRT President & CEO Todd Meredith said that with these transactions, the company has secured funding for the special cash dividend at an attractive cost of capital and that it expects to continue to positively shape the combined company’s portfolio and source accretive capital through more asset sales and joint venture investment.

An HRT spokesperson confirmed to Commercial Property Executive that the combined company will keep the Healthcare Realty name and continue to trade under its NYSE symbol (HR).

Finally, HRT stated that it expects to form a new joint venture with CBRE Investment Management. Initially, HRT plans to contribute four former HTA properties, while retaining a 20 percent interest in the joint venture and managing and leasing the properties.

In late 2020, HRT entered into a 50-50 joint venture agreement with TIAA to invest in medical office properties at the pace of about $200 million a year.

And in April of last year, HRT purchased a 57,600-square-foot medical office building in Laguna Hills, Calif., from Meridian for $31.3 million.

 

Source: Commercial Property Executive

Northwest Healthcare Properties Real Estate Investment Trust Announces Closing Of $765 Million U.S. Portfolio Acquisition

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NorthWest Healthcare Properties Real Estate Investment Trust (the (TSX: NWH.UN) (“NorthWest” or the “REIT”), Canada’s leading global diversified healthcare real estate investment trust, announced today the closing of its previously announced $765 million (US$601.9 million) acquisition of 27 cure-focused healthcare properties located in the United States is now closed (the “U.S. Portfolio”).

The acquisition is the REIT’s first in the United States. The U.S. Portfolio comprises 27 properties including 7 hospitals, 5 micro-hospitals, and 15 MOBs totaling 1.2 million square feet. The portfolio is 97% occupied, with a weighted average lease expiry of 10.7 years and is geographically diversified across 10 states with approximately 60% of NOI coming from top 20 US MSAs with a focus in the Greater Chicago Area and Sunbelt States. The portfolio includes an attractive mix of single-tenant (78% of NOI) and multi-tenant (22%) properties and 91% of NOI is either triple or quadruple net.

As funded, the transaction is expected to be immediately accretive to the REIT’s AFFO per unit. As the REIT integrates the US Portfolio and expands on its market entry strategy over the course of 2022 it intends to recapitalize the acquisition with a new co-investment partner.

About NorthWest Healthcare Properties Real Estate Investment Trust

NorthWest is a global real estate investor and asset manager focused on properties and partnerships at the intersection of healthcare, knowledge and research. Founded in 2004 and publicly traded since 2010, NorthWest (TSX: NWH.UN) is a real estate investment trust that owns and operates a $10 billion portfolio of 224 high quality healthcare properties across Canada, the United States, Brazil, the UK, Germany, the Netherlands, Australia, and New Zealand. With more than 300 professionals globally, operating in 7 countries, NorthWest brings a global view, local execution capabilities, and a long-term ownership strategy which allows it to serve as a real estate partner of choice to leading healthcare operators around the world.

 

Source: HREI