JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with more than $4.7 billion in portfolio assets announced Thursday the acquisition of 9101 Stony Point Drive, an 87,000-square-foot, world-class, medical office building in Richmond, Virginia. This recently constructed, mission-critical property is net-leased on a long-term basis as a premier outpatient facility and headquarters for Virginia Urology, the leading urology practice in central Virginia. The purchase price was approximately $52 million.
The medical office building market is a niche one, but has attracted increasing interest from investors over the past decade. Investors see medical office buildings, which typically include ASCs, physician offices and screening centers, as desirable assets because of their resilience during market shifts, high occupancy rates and positive outlook. Largely because of the COVID-19 pandemic, medical office building sales volume declined 12.2 percent year over year to $11.1 billion in 2020, but the drop off was far less than other commercial real estate sectors, according to a report from Colliers, a real estate investment management company. But in the coming years, in line with the country’s aging population, the number of medical office buildings is expected to boom.
KKR, a leading global investment firm, and Cornerstone Companies, Inc. (“Cornerstone”), a full-service healthcare real estate investment, development and management firm, today announced that Cornerstone and KKR have entered into a joint venture (the “Joint Venture”) to acquire and develop a portfolio of diversified healthcare properties across the United States. KKR and Cornerstone have seeded the portfolio with the recapitalization of 25 healthcare properties owned by Cornerstone. With funding commitments provided by KKR’s real estate and credit funds and Cornerstone, the Joint Venture is positioned to acquire more than $1 billion in real estate assets over the next few years.
Latticework Capital Management, a Dallas-based private equity firm focused on partnering with entrepreneurially minded management teams to build leading healthcare companies, announced Tuesday that it has made a strategic investment in Healthcare Building Solutions (“HBS”). Founded in 2006 and headquartered in Langhorne, Pennsylvania, HBS offers project management, transition planning and facility activation services, medical equipment planning and turn-key development services.
A joint venture between AEW Capital Management and Montecito Medical Real Estate has closed a $245 million recapitalization of a 31-property medical office building portfolio across 10 states, Commercial Observer has learned. The portfolio consists of 27 single-tenant and four multi-tenant buildings aligned with major health systems and physician groups. Eighty-one percent of the portfolio offers critical infrastructure, such as ambulatory surgery centers or imaging facilities.
A medical office building housing a surgery center in Jacksonville, Fla., has been sold for $11.2 million, the Jacksonville Business Journal reported Sept. 13. The 11,000-square-foot property is home to First Coast Surgery Center, which performs spine, orthopedic and sports medicine procedures.
Montecito Medical, a premier owner of medical office properties throughout the U.S., has completed the acquisition of a medical office building in Austin, Texas, that is home to three well-established medical providers and an ambulatory surgery center. The two-story Water Leaf Medical Office Building, which offers just over 26,000 rentable square feet of space, was built in 2016 and is 100% leased. Water Leaf’s medical tenants include Balcones Pain Management; Water Leaf Surgery, Ltd.; and Austin Foot and Ankle Center.
A medical office building dubbed the Tualatin (Ore.) Surgery Center was sold, according to Ethos Commercial Advisors, the agent who advised the seller. The building is partially leased by Spinal Diagnostics, a four-physician practice with three locations in the Tualatin area.
DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge” or the “Company”), a leading global digital infrastructure REIT, today announced it has reached an agreement to sell its Wellness Infrastructure business (the “Wellness Sale”) to an investment group comprised of two leading real estate investment firms, Highgate Capital Investments (“Highgate”) and Aurora Health Network (“Aurora”) in a transaction valued at $3.2 billion. The Wellness Infrastructure business is composed of a portfolio of more than 300 facilities across senior housing, skilled nursing, medical office buildings and hospitals.
Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), is pleased to announce the acquisition of a Fresenius Medical Care property for $3.1 million.
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