CHICAGO — Marcus & Millichap has brokered the sale of a 7,018-square-foot property net leased to DaVita in Chicago for $4.4 million. The building is located at 4323 N. Pulaski Road. The kidney care company has signed a new 15-year, double-net lease with 10 percent rent increases every five years. Austin Weisenbeck, Sean Sharko and Valerie Cook of Marcus & Millichap marketed the property on behalf of the seller, a developer. The buyer was not disclosed.
IRVINE, CALIF. — Irvine-based real estate investment trust HCP (NYSE: HCP) has entered into a definitive agreement to form a new $605 million joint venture with Morgan Stanley Real Estate Investment (MSREI) on a 2 million-square-foot medical office building portfolio. MSREI will provide cash to the joint venture for a 49 percent stake, while HCP will contribute nine wholly owned medical office buildings valued at approximately $320 million. These assets, located primarily in Texas and Florida, comprise 1.2 million square feet of leasable space and are 80 percent occupied. The joint venture will use the cash contributed by MSREI to fund the $285 million acquisition of a medical office portfolio in Greenville, S.C. Healthcare Trust of America Inc. (NYSE: HTA) has agreed to sell the Greenville portfolio, which includes 16 medical office buildings totaling approximately 856,000 square feet. HTA originally acquired the portfolio in 2009 for $163 million as part of a sale-leaseback transaction. HCP and MSREI will immediately market for sale three of the smaller assets within the Greenville portfolio, leaving the venture with a combined 832,000 square feet of leasable space. Greenville Health System, the largest health system in South Carolina, occupies 94 percent of the portfolio’s square …
SCRANTON, PA. — Geisinger Health Systems has acquired the Mt. Pleasant Medical Center, a 30,750-square-foot medical office building in Scranton for $6.4 million. Geisinger purchased the property from a private partnership. Healthcare Real Estate Group, Marcus & Millichap and Hinerfeld Commercial RE represented both parties in the transaction. Located at 521 Mt. Pleasant Drive, the property was built in 2011 and is fully occupied by a tenant roster that includes Commonwealth Health Physician Network, LabCorp and Valley Oral & Maxillofacial Surgery PC.
HOLLYWOOD, FLA. — Cushman & Wakefield has arranged the $11.5 million sale of Hollywood Medical Office Building, a 57,815-square-foot facility located on the Memorial Regional Hospital South campus in Hollywood. Scott O’Donnell, Greg Miller, Dominic Montazemi, Miguel Alcivar, Jason Hochman and Donna Kom of Cushman & Wakefield arranged the transaction on behalf of the seller, Miami-based SF Partners. A private real estate investor acquired the asset. The five-story building was constructed in 1975 and was 84 percent leased at the time of sale to tenants such as Oncology Associates of South Florida, Pinnacle Healthcare System, Reyes & Reyes MD, Internal Medicine Specialty and HealthCare Support Administrators.
SPRING BRANCH, TEXAS — REOC Development LLC has recently broken ground on Singing Hills Professional Building, a three-story, 60,000-square-foot medical office building in Spring Branch. The property will be situated at U.S. Highway 281 and Harmony Hills Street, about 30 miles north of downtown San Antonio. Ambulatory Surgical Center (ASC) has leased space on the ground floor, and REOC’s brokerage firm affiliate REOC San Antonio is pursuing an imaging center provider for the remainder of the first floor space. About 65 percent of Singing Hills’ square footage is preleased, according to REOC Development. The project team, including architect Luna Middleman Architects and general contractor Middleman Construction Co., expect to deliver the facility next fall.
Healthcare properties present a tremendous opportunity for real estate developers in the Milwaukee market and the upper Midwest. The national and regional healthcare real estate sectors remain on solid footing, according to the 2018 Healthcare Marketplace Report from Colliers International. The sector remains attractive in terms of both stability and diversification. There will always be a demand for healthcare services as the U.S. population continues to age at an unprecedented rate. A growing number of Milwaukee-based health systems have announced plans to expand in bids to gain or maintain market share. The merger of Aurora Healthcare with Advocate Health Care Network to create a single health system known as Advocate Aurora Health is a recent example. There’s been a significant expansion of and increased focus on the outpatient ambulatory environment. Health systems face significant capital expenditures in order to maintain aging hospitals. Alternative developments such as specialty outpatient facilities and micro hospitals have gained momentum and allow for expansion to remain competitive while efficient. With the emerging trend toward population health management, hospitals and health systems take on the financial risk of providing care for a certain population across a certain geography. Having to take on the additional risk of …
TUCSON, ARIZ. — Kidder Mathews has arranged the purchase of Desert Sun Medical Center located at 7140 E. Rosewood St. in Tucson. Cypress West Realty Partners acquired the property for $4.4 million. The center features 15,038 square feet of medical office space. The seller was not disclosed. Fletcher Perry and Darren Tappen of Kidder Mathews represented the buyer in the off-market transaction.
HOUSTON — Chicago-based LaSalle Investment Management has acquired Memorial Hermann Medical Plaza, a 510,000-square-foot medical office property in Houston. The 28-story building is located within the Texas Medical Center on the city’s south side. The property, which features retail amenities and a 13-level parking garage, was 99 percent leased at the time of sale. Scott Galloway, Colby Mueck and Rusty Tamlyn of HFF represented the seller, a partnership between Mischer Healthcare, Memorial Hermann Health System and other private investors, in the transaction.
DALY CITY, CALIF. — A joint venture between Pinnacle Capital Management Services and Harrison Street Real Estate Capital has purchased Physicians Medical Center. The medical office building is located at 901 Campus Drive in Daly City, south of San Francisco. Swift Real Estate Partners sold the property for $30 million. Situated on 2.4 acres, the purpose-built medical office building features 70,705 square feet of space. At the time of sale, the three-story property was 92 percent leased to a variety of tenants, including Palo Alto Medical Foundation, Sutter Health, Campus Surgery Center and AmSurg/Envision Healthcare. Evan Kovac, Andrew Milne and David Dokko of HFF represented the seller and procured the buyer in the deal. Additionally, HFF’s Zack Holderman, John Chun and Trent Jemmett arranged a $25 million, non-recourse, floating-rate acquisition loan for the buyer.
CAMBRIDGE, MASS. — The Davis Cos. has arranged a 48,700-square-foot lease for Japanese pharmaceutical conglomerate Eisai Inc. at the Alewife Research Center in Cambridge. Eisai will relocate from its current site in Andover in the first quarter of 2019. Developed by The Davis Cos., the Alewife Research Center is a LEED Silver-certified, 224,000-square-foot laboratory building with ground-floor retail. Located at 35 Cambridgepark Drive, the five-story facility is scheduled for completion by Oct. 1, 2018.
