PELL CITY, ALA. — Fairfield Asset Advisors has arranged the $15.8 million sale of a 50,400-square-foot medical office building located at 74 Plaza Drive in Pell City, roughly 24 miles east of Birmingham. Northside Medical — a Birmingham-based specialty practice — anchors the building, which was constructed in 2017. An undisclosed borrower acquired the asset from the developers, a physician group.
DUBLIN, OHIO — Colliers International has brokered the sale of Stoneridge Medical Center in Dublin for $2.3 million. The 46,500-square-foot medical office building is located at 4015-4059 W. Dublin Granville Road. Current tenants include OSU Obstetrics and Gynecology and OSU Radiology. Jaimine Johnson, Christopher Potts, George Stecz and John Underman of Colliers represented the seller, LNR Partners. A Columbus, Ohio-based real estate investor was the buyer.
BRAINTREE, MASS. — NKF Capital Markets has orchestrated the sale of Blue Hills Medical Center in Braintree for $11.5 million. Braintree is 13 miles south of Boston. Located at 340 Wood Road, the 48,617-square-foot Blue Hills Medical Center is 100 percent leased to 14 tenants. The tenant roster includes Milton Pediatrics, MassGeneral Hospital for Children and South Shore Hospital. NKF represented the seller, Jumbo Capital Management, in the transaction. The buyer was Novaya Real Estate Ventures.
SOUTHLAKE, TEXAS — Marcus & Millichap has negotiated the sale of a 10,750-square-foot healthcare asset located in Southlake, a northern suburb of Fort Worth. The property is net-leased to Healthcare Associates of Texas. Zach Ryan and Ron Hebert of Marcus & Millichap represented the seller, a Southlake-based private investor, in the transaction. Mark Allen of Marcus & Millichap procured the buyer, also a Southlake-based investor. Both parties requested anonymity.
HOWELL, MICH. — Capital One has provided a $13.2 million, fixed-rate HUD loan to refinance an 88-bed skilled nursing facility in Howell, approximately 50 miles northwest of Detroit. The unnamed facility has earned a five-star rating from Medicare, and was 98.9 percent occupied at the time of refinancing. The name of the facility and borrower were not disclosed. Joshua Rosen of Capital One originated the loan. The transaction enabled the borrower to replace bank debt with long-term financing and to recoup capital expenditures. “The substantial additional cash flow that this transaction frees up illustrates the benefits of HUD’s 232/223(f) program,” says Rosen. “The borrowers are benefiting from both a lower rate and an extended amortization period, which in the case of this loan is 35 years.”
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Colliers to Acquire 75 Percent Stake in Harrison Street for $450M
TORONTO AND CHICAGO — In an effort to expand its global investment management platform, Colliers International Group Inc. (NASDAQ: CIGI) has agreed to acquire 75 percent of Harrison Street Real Estate Capital LLC for $450 million. Under the terms of the transaction, which is expected to close during the third quarter, the senior management team of Harrison Street will hold the remaining 25 percent of equity. An additional $100 million will be payable to Harrison Street in 2022 based on the achievement certain performance targets. Chicago-based Harrison Street currently manages about $14.6 billion worth of assets, primarily in the seniors housing, student housing, medical office and self-storage sectors. The company’s senior management team will continue to handle its day-to-day operations. No changes to the company name have been announced at this time. According to CEO Christopher Merrill, Harrison Street was seeking an outside investment partner to assist with its global positioning strategy. Harrison Street was drawn to the depth of Colliers’ relationships on a global scale, as well as the brokerage firm’s decentralized management style and track record in investment sales. For its part, Toronto-based Colliers was in the market for a new platform that would enable global investment growth. …
FORT WORTH, TEXAS — Arlington-based healthcare provider Texas Health Resources will undertake a $300 million expansion project at Texas Health Harris Methodist Hospital Fort Worth. The project will include a nine-story tower that will feature 144 patient beds, 15 surgical suites and pre- and post-operative service areas. The tower will also include space for support services and two floors will be used as shell space for future expansion. Additional parking space will also be added to the hospital, which opened in 1930 and currently features 720 beds. Construction is slated to begin later this year and wrap up in late 2021.
FORT MYERS, FLA. — Skanska USA has unveiled renovation and expansion plans for Gulf Coast Medical Center, a hospital in the Southwest Florida city of Fort Myers. The $229 million expansion will add three floors totaling 365,700 square feet. The project includes the expansion of the emergency departments, clinical laboratory, radiology department, dining services and the central energy plant. The planned expansions will increase the hospital’s bed capacity from 356 to 624. Skanska will also renovate an existing 48,500 square feet of space at the hospital. Skanska is leading the project on behalf of the hospital owner, Lee Health. The development team, including general contractor Gates Construction and architect HKS Inc., expects to complete the hospital’s renovation program by September 2021.
HATTIESBURG, MISS. — Sina Cos. has broken ground on a new medical office building for the Hattiesburg Clinic in Hattiesburg. The 57,221-square-foot Orthopaedic & Sports Medicine facility will be the second property developed for the clinic, following the development of Women’s Center at 28th Place in 2006. The new facility will house clinical practice space for 14 orthopedic providers, a 9,000-square-foot physical therapy suite, community conference center and an imaging suite. In addition, the building will be connected to a 14,310-square-foot indoor sports center with weight systems, a half-court basketball court, batting cage and a partial turf football field that opens to an exterior natural turf field. MSTSD Architects is designing the project, and Freese-Johnson is the general contractor. Sina expects to wrap up construction on the facility in April 2019. Hattiesburg Clinic is a physician-owned, multi-specialty practice with more than 350 providers serving 19 counties across southern Mississippi.
SAN JOSE, CALIF. — Easterly Government Properties has agreed to acquire a Department of Veterans Affairs (VA) Outpatient Clinic known as VA – San Jose. Completed in first-quarter 2018, VA – San Jose is part of the VA Palo Alto Health Care System and leased to the VA for an initial, non-cancellable lease term of 20 years through February 2038. The three-story, 90,085-square-foot facility consists of medical clinic and administrative space, offering primary care, mental healthcare, women’s health, audiology, speech pathology, podiatry, optometry and dermatology services. The name of the seller and acquisition price were not disclosed.