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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

Artemis Joint Venture Acquires 12-Building Medical Office Building Portfolio Spanning Eight States

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Artemis Real Estate Partners, in a joint venture with Rendina Healthcare Real Estate and CalSTRS, has acquired a 12-building, 352,981-square-foot medical office portfolio.

Newmark acted as equity placement agent, broker and financial advisor for the transaction. The brokerage also facilitated Rendina and Artemis entering into a $1 billion joint venture back in 2021, a partnership that was seeded through the recapitalization of a six-property medical office building portfolio.

The 96 percent-occupied ensemble encompasses assets spanning Florida, Georgia, Illinois, Minnesota, Nevada, Ohio, Texas and Virginia. Most of the properties are located in Certificate-of-Need states, with their weighted average remaining lease term reaching 6.6 years.

Health systems, credit tenants and physician networks occupy more than half of the leased space in the portfolio. With a $21 triple-net rent operating income per occupied square foot, average rents across the assets are roughly 10 percent below national portfolio averages traded over the past five years.

Newmark’s Healthcare Capital Markets team representing the seller included Senior Managing Directors Jay Miele, Michael Greeley and John Nero, together with Executive Managing Director Ben Appel. Associates Adam Goss and Ron Ott provided financial analysis for the deal.

In early 2022, Artemis also entered in a joint venture with Thomas Park Investments, planning to invest a total of $500 million in the purchase of core-plus medical office properties. The partners seeded the venture with the acquisition of three assets totaling 92,000 square feet.

 

Source: Commercial Property Executive

Big Sky Medical Joins With GFH On $200M Medical Office Deal Across Seven States

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GFH, a leading institutional investor based in Bahrain with a global portfolio of investments, has a $200 million deal with Dallas-based Big Sky Medical to acquire 13 outpatient medical office buildings across seven states.

“Big Sky “complements our own global investment capabilities with deep knowledge of the US healthcare market,” Nael Mustafa Chief Investment Officer, Real Estate of GFH said in prepared remarks.

Earlier this year, Newmark assisted in arranging the joint venture, which was seeded by a $400+ million medical office portfolio aggregated by Big Sky during the past 12 months. Newmark led the portfolio financing.

 “The transaction “is a good indication that the market remains quite competitive for well-curated healthcare portfolios,” Newmark senior managing director John Nero said in a prepared statement.

Nero, along with executive managing director Ben Appel, senior managing directors Jay Miele and Michael Greeley of Newmark’s Healthcare Capital Markets group and vice chairman Alex Foshay and executive managing director Joseph Morris of Newmark’s International Capital Markets group, acted as sole financial advisors to the joint venture.

The transaction includes a component for future acquisition financing, which will allow the venture to continue its acquisition strategy under similar terms, according to a release.

 

Source: GlobeSt.