LOS ANGELES — Stockdale Capital Partners has created a new open-ended, core-plus healthcare fund that will actively pursue medical office acquisitions. The seed investment was a 147,078-square-foot medical office building located at 2100 West 3rd Street Medical Center in Los Angeles. The space is 99 percent leased to major tenants, including Children’s Hospital of Los Angeles, Providence Health & Services and AltaMed Health Services Corporation.
AUGUSTA, GA. — Wellstar Health System and Augusta University Health System (AUHS) have reached an agreement where AUHS facilities will come into Wellstar’s network of hospitals and clinics. The most notable affected facility is Augusta University Medical Center (AUMC), a more than 600-bed safety net and teaching hospital. Wellstar will also have a broader affiliation with the university’s Medical College of Georgia, the only public medical college in the state. Marietta, Ga.-based Wellstar has also pledged to invest $800 million over 10 years for AUHS facilities and infrastructure, including more than $200 million allocated to AUMC. Additionally, capital for a new hospital, medical office building and ambulatory surgery center in Columbia County and the costs associated with implementing a new state-funded electronic medical records system throughout AUHS will be funded. AUHS will operate under a new name, Wellstar MCG Health, once the deal is finalized later this year. The boards of Wellstar and AUHS and the Board of Regents of the University System of Georgia have approved the agreement.
SALT LAKE CITY AND BUFFALO, N.Y. — Extra Space Storage Inc. (NYSE: EXR), a Salt Lake City-based REIT, has entered into a definitive agreement to acquire Buffalo-based REIT Life Storage (NYSE: LSI) in an all-stock transaction. According to multiple news outlets including The Wall Street Journal and Reuters, the deal is valued at $12.7 billion. The combined portfolio will yield the largest self-storage operation in the country, with over 3,500 locations spanning over 264 million square feet that serve more than 2 million customers. In announcing the deal, executives of both REITs noted that combining their respective platforms creates opportunities to maximize value for shareholders via additional scaling of third-party management services and access to elevated levels of joint-venture equity and bridge-loan debt for future developments and acquisitions. Under the terms of the agreement, Life Storage shareholders will receive roughly nine-tenths of a share of Extra Space common stock for each share of Life Storage stock that they own. At closing, Extra Space and Life Storage shareholders are expected to own approximately 65 percent and 35 percent of the combined company, respectively. The boards of directors of both companies have unanimously approved the transaction, and the deal is expected to …
After massive bank runs earlier this month, the Federal Deposit Insurance Corp. (FDIC) took the reins at two regional banks, Silicon Valley Bank based in Northern California and New York City-based Signature Bank. First Citizens Bank has since agreed to acquire the assets of Silicon Valley Bank. According to the FDIC, 2023 already represents the largest year in bank failures in terms of total assets ($319.4 billion combined between the two banks) since 2008, when 25 banks failed (representing $373.6 billion in total assets). “In a very short timeframe, we’ve now seen two of the biggest bank failures on record, the biggest one of course being Washington Mutual back in September 2008,” said Matt Anderson, managing director of Trepp, a New York-based data analytics firm. “We are in a very fraught period right now. Nerves are very frayed at the moment seeing two large bank failures in quick succession.” The comments came during a Trepp-hosted webinar titled “Bank Turmoil and What it Means for CRE & Capital Markets” on Friday, March 24. The three-person webinar featured panelists Anderson and Dr. Stephen Buschbom, research director at Trepp. Lonnie Hendry, the firm’s senior vice president and head of commercial real estate and …
RALEIGH, N.C. — First Citizens Bank has entered into an agreement with the Federal Deposit Insurance Corp. (FIDC) to acquire Silicon Valley Bank following the California-based regional lender’s collapse earlier this month. Under the terms of the deal, First Citizens Bank will purchase all loans and certain other assets and assume all customer deposits and certain other liabilities out of receivership from the FDIC. This assumption includes approximately $110 billion in assets, $56 billion in consumer and business deposits and $72 billion in outstanding loans. In addition, First Citizens Bank will receive a line of credit from the FDIC to ensure its own liquidity throughout the purchase process. First Citizens Bank has also entered into a loss-share agreement with the FDIC to provide further downside protection against potential credit losses. First Citizens Bank will not acquire any assets, common stock, preferred stock or debt of SVB Financial Group, the former holding company of Silicon Valley Bank. Frank Holding Jr., chairman and CEO of First Citizens Bank, said in a prepared statement that at the most fundamental level, the acquisition allows his company to scale its platform by adding new lines of business in new markets. He specifically cited the appeal …
NEW YORK CITY — Foot Locker will close more than 400 underperforming stores as part of its “Lace Up” plan, which was announced during a recent call with investors. According to Tony Aversa, senior vice president of global store development, the move is part of a strategy to manage portfolio risk by way of strategic closures. The New York City-based shoe retailer currently operates 2,700 stores, which will be reduced to approximately 2,400 by 2026, a number that also reflects the planned addition of stores in new formats. Despite the closures, Foot Locker intends to increase its aggregate brick-and-mortar footprint by roughly 10 percent to 14.5 million square feet by 2026. Foot Locker will also shift to a focus on off-mall stores, with the goal of having off-mall locations comprise more than 50 percent of its real estate portfolio by 2026.
ORANGE COUNTY, CALIF. — CBRE has acquired the Los Angeles and Orange County affiliates of Integra Realty Resources (IRR). IRR is a network of commercial real estate valuation, counseling and advisory firms in the United States. IRR-Los Angeles/Orange County specializes in appraisals for right-of-way (ROW) properties, in addition to providing valuation and advisory services across a broad spectrum of property types. The firm has completed about 500 assignments annually for more than 100 regional and national clients. The acquisition complements CBRE’s national Valuation & Advisory Services’ ROW practice, the largest of its kind in the U.S., and expands the firm’s valuation team in Southern California. With offices in Los Angeles and Irvine, the new teams will integrate with CBRE’s existing team. John Ellis and Beth Finestone, principals of IRR-Los Angeles/Orange County, will continue to run the incoming team’s operations in Southern California as executive vice presidents for CBRE.
SAN DIEGO — Sunrise Management has taken over operations of The Warwick, a newly renovated, Class A apartment community in San Diego’s Hillcrest neighborhood. Spectrum Partners recently acquired the luxury multifamily community for $37.4 million. The Warwick was converted from a hotel into apartments in 2017. The 80-unit community now includes a resort-style pool, sun deck with cabanas, fitness center, technology-enabled package lockers, enclosed dog run, LATCH keyless entry and outdoor social lounge.
PITTSBURGH — Dick’s Sporting Goods (NYSE: DKS) plans to open as many as “75 to 100” new House of Sport stores over the next five years, according to Lauren Hobart, CEO of the Pittsburgh-based retailer. House of Sport is a retail concept that provides interaction and experiences including putting greens, rock walls, batting cages and turf baseball fields, along with sports-related apparel and equipment for sale. There are currently three House of Sport stores in Rochester, N.Y.; Knoxville, Tenn.; and Minnetonka, Minn. “House of Sport will be a significant part of our future growth story,” says Hobart. “Over the next two years, we plan to open around 20 additional locations, including downtown Boston and our two hometowns of Pittsburgh and Binghamton, N.Y.” Hobart’s comments came during an earnings call following the release of Dick’s Sporting Goods’ fiscal fourth-quarter 2022 earnings report. According to CNBC, Dick’s outperformed expectations with a 5.3 percent increase in same-store sales during its fiscal 2022, which ended Jan. 28. Analysts predicted the retailer’s same-store sales would rise only 2.1 percent. Dick’s recently announced its decision to exit its Field & Stream brand, which focused on outdoor sports such as fishing and hunting. As a result, the …
AURORA AND LAKEWOOD, COLO. — The Ensign Group Inc. (NASDAQ: ENSG) has acquired the operations of Hampden Hills Post Acute, a 218-bed skilled nursing facility in Aurora, and Mapleton Post Acute, an 84-bed skilled nursing facility in Lakewood. Both properties are located in first-ring suburbs of Denver. Ensign has signed long-term, triple-net leases for both. The owner was not disclosed. These acquisitions bring Ensign’s growing portfolio to 290 healthcare operations, 26 of which also include senior living operations, across 13 states. Ensign subsidiaries, including Standard Bearer, own 108 real estate assets and sublease three healthcare operations to a third-party.
