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Sila Zeros In On Healthcare With $1.3B Data Center Portfolio Sale

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With the sale of a 29-property data center portfolio, Sila Realty Trust is exiting the data center space to focus on healthcare.

Sila sold 29 data center properties to Mapletree Industrial Trust, a REIT listed on the Singapore Exchange, for $1.3 billion. The transaction will be completed in one or more closings during Q3 2021.

“This action marks another key step in Sila Realty Trust’s evolution to provide a clear path for the company to pursue a strategy as a pure-play healthcare REIT,” said Michael A. Seton, Sila CEO and president in a prepared statement.

Sila Realty Trust, previously known as Carter Validus Mission Critical REIT II, owned both data centers and healthcare assets before the sale.

As one example of the type of assets it seeks, last September Sila purchased Tampa Healthcare Facility, a 33,822 rentable square foot medical office building constructed in 2015. The building is located on 2.87 acres in Tampa, the second-fastest growing market in Florida and the twelfth-fastest growing market in the US. The facility, which was 100% net-leased to six tenants at the time of the sale, serves as a strategic location for both primary and urgent care, pediatric spinal care, clinical laboratory services and various types of outpatient surgery.

In the release announcing the sale, Seton said the company was focused on acquiring high-quality, well-located assets with a strong and diverse tenant roster.

“All of these attributes are indicative of our existing portfolio combination and we expect this property will serve as a strong complement to our growing asset base,” Seton said at the time.

It shouldn’t be a surprise that Sila is focusing on the medical sector. It has held up exceptionally well through the pandemic. While medical office buildings sales volume declined in 2020, it was much less of a drop than the other commercial real estate sectors, according to a report from Colliers.

MOB investment decreased 12.2% year-over-year in 2020 to hit $11.1 billion, according to Colliers, while cap rates fell 20 basis points to 6.5%. By comparison, commercial real estate posted a 32% decline in sales volume overall.

 

Source: GlobeSt.

Flagler Health+ Pens Deal For 40 Acres In Durbin Park In St. John’s County, Florida

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Flagler Health+ announced it has entered into an agreement with Gate Lands, the real estate subsidiary of Gate Petroleum Company, to purchase 40 acres within the company’s Durbin Park development.

The Durbin Park Development

The property, located between Interstate 95 and State Road 9B, is anticipated to be developed in three phases: Phase one of this project will introduce a Flagler Health+ Village that incorporates family practice, women’s care, pediatrics, urgent care, imaging and laboratory services. The health village will also include dedicated green space for healthy lifestyle programming, arts activities and community engagement.

“As St. Johns County’s leading healthcare provider for more than 130 years, Flagler Health+ is committed to furthering a sense of connectedness and community throughout all areas of this very special region, including the northernmost sector of our county,” said President & CEO Jason Barrett. “We are focused on building meaningful, seamless relationships along the journey of life and look forward to serving the growing needs of area residents.”

Longer term plans for the 40-acre health and wellness campus include a hospital, outpatient surgical services and cancer care, among others. Additional offerings will be further refined in partnership with area residents through a dedicated Durbin Park Health Advisory Council.

“We are excited that Flagler Health+ has chosen to create its Flagler Health+ Village in Durbin Park,” said Drew Frick, president of Gate Lands. “Our goal with Durbin Park is to create a distinct destination where individuals and families can live, work, shop and be entertained. The community health approach that Flagler Health+ brings to this project will further this goal by creating jobs and expanding the amenities and services available to one of the fastest growing areas in the state.”

St. Johns County’s Director of Economic Development Melissa Glasgow and St. Johns County Commissioner, James Johns also support the project.

“We are thrilled to see a full-service, state-of-the art health and wellness campus included in the plans for Durbin Park,” stated Glasgow. “As one of St. Johns County’s largest employers, we are pleased that Flagler Health+ continues to invest significant resources to support our growing community and bolster our status as Florida’s Healthiest County.”

“I am supportive of this endeavor, which will employ our residents, reduce commute times for critical services and blend well with surrounding developments,” added Johns, who represents Durbin Park’s district. Construction is anticipated to begin in 2020.

 

Source: JBJ