As some of healthcare real estate’s largest investors redirect billions toward another growing sector, a new group of buyers is stepping in to pursue opportunities in medical office properties.
Although Ventas did not delineate the MOBs that are included, a search of the RevistaMed database found that Santerre is listed as the owner of about 100 properties. The largest is the 169,000 square foot Elm Plaza at 908 N. Elm St. in Hinsdale, Ill. (PHOTO CREDIT: OfficeSpace.com.)
Most healthcare real estate (HRE) professionals seem to agree that, primarily due to higher interest rates, 2023 medical office building (MOB) sales volume will pale in comparison to recent years.
So the recent announcement that an 88-asset MOB portfolio is about to change hands is big news – and could very well end up being the year’s largest transaction. But, ironically, higher interest rates are exactly what are driving the deal.
Chicago-based Ventas Inc., the nation’s second largest healthcare real estate investment trust, announced on March 31st that it intends to foreclose on a large HRE portfolio that was put up as collateral for a 2019 loan.
Source: HREI
Ventas has purchased a 101,608-square-foot healthcare facility in Plano, TX for $58 million from Cawley Partners.
The three-story property, located at 5120 Legacy Dr., is fully-leased to Denver-based, Eating Recovery Center. The tenant utilizes the facility for both inpatient and outpatient eating disorder treatment.
The acquisition represents Ventas’ first investment in an inpatient behavioral health facility.
The acquired property was originally built in 2016 by VanTrust Real Estate as a speculative office project. In 2018, Cawley Partners acquired the vacant property and secured a lease with ERC. The lease offered ERC a phased occupancy structure, which provided time for the tenant to increase operations, prior to occupying the entire building.
Cushman & Wakefield’s healthcare capital markets team, including Travis Ives and Gino Lollio, represented and advised Cawley Partners on the disposition of the facility.
“Ventas is one of the largest and most respected ownerships of healthcare real estate in the world,” says Ives. “Historically behavioral health facilities have been considered somewhat of a ‘niche’ asset within healthcare real estate, but this transaction may be a watershed moment for the industry as others take notice of Ventas’s entry into the space.”
“In a healthcare real estate market where yields continue to compress, experienced investors are starting to look outside of the typical MOB box towards emerging micro-niches to secure optimal returns with comparable low-risk and strong operational performance,” says Lollio.
Source: GlobeSt.
Receive newly posted industry news and information delivered right to your email inbox!
