MINNEAPOLIS — IRET (NYSE: IRET) has entered into an agreement to sell its medical office portfolio for $417.5 million. The buyer was not disclosed. The properties, totaling approximately 1.3 million square feet, include the company’s entire healthcare portfolio, which consists of 28 healthcare properties and one other commercial property occupied by a healthcare tenant. The transaction, expected to close by the end of January, is one of several key deals nearing the completion of IRET’s strategic transformation, according to the company. IRET also sold 22 other non-core properties for an aggregate sale price of $98.8 million since July. This includes the company’s final two seniors housing properties, marking IRET’s full exit from that segment, as well as three industrial assets and one healthcare asset located in the Twin Cities.
BROOKHAVEN, GA. — The Atlanta Hawks Basketball Club and Emory Healthcare have opened a 90,000-square-foot training facility and sports medicine center in Brookhaven, roughly 11 miles north of downtown Atlanta, on Tuesday. The privately funded Emory Sports Medicine Complex integrates four facilities: Emory Healthcare Courts, the official practice and training facility for the Atlanta Hawks; Emory Sports Medicine Center and Emory Physical Therapy, which house Emory’s entire sports medicine division; and Peak Performance Project, an applied sports science services provider for elite-level athletes from around the world. The Hawks’ new facility is the first in the NBA to be co-located with an entire sports medicine center, allowing for access to high-tech equipment such as a 3 Tesla MRI scanner, 3D motion capture analysis and blood/sweat testing and analysis on-site.
SAN ANTONIO — CBRE has arranged the sale of an 80,000-square-foot medical building located at 5109 Medical Drive in San Antonio. Built in 2008, the property is located on the CHRISTUS Santa Rosa medical center campus on the city’s northwestern side. The facility includes 38 semi-private rooms for 100 patient beds, a clinical lab and a pharmacy. Scott Herbold of CBRE represented the seller, Stream Realty Partners, in the transaction. PPH Real Estate LLC, a partnership of local physicians and investors, purchased the asset for an undisclosed price.
DALLAS — HFF has arranged the $26.6 million recapitalization and financing of a six-property medical office portfolio located throughout Florida and North Carolina. Anthony Frogameni, Ben Appel and Matt DiCesare of HFF marketed the portfolio on behalf of the borrower, Catalyst HRE, and procured the investor, Charter Realty Group. In addition, Michael George and Charley Dickenson of HFF arranged fixed-rate senior financing through Capital One on behalf of the new venture between Catalyst HRE and Charter Realty Group. The portfolio, which totals 68,000 square feet, comprises four radiation oncology treatment centers operated by Robert Boissoneault Oncology Institute in the Florida markets of Lecanro, Ocala and The Villages; the Florida Diagnostic Imaging Medical Office Building in Panama City, Fla.; and the Eastern Regional Surgical Center in Wilson, N.C.
HOUSTON — Medistar Corp. will develop a 550,000-square-foot, Class A medical office tower at 6700 Main St. in Houston, adjacent to the Texas Medical Center. The site previously housed a Best Western hotel, which will soon be demolished. The property will feature an oversized parking garage and an undetermined amount of ground-floor retail space, in addition to space for both physicians and healthcare providers. A timetable for completion has not yet been established.
NEW ALBANY, IND. — Everhealth Properties LP, a subsidiary of Everest Healthcare Properties LLC, has acquired New Albany Medical Center, a 60,000-square-foot medical office building in New Albany, roughly six miles west of Louisville. The Scottsdale, Ariz.-based company acquired the asset through its tax-deferred IRS Section 721 program. Other terms of the transaction were not disclosed. At the time of sale, New Albany Medical Center was 95 percent occupied, with a weighted average lease term of almost five-and-a-half years. The seller was not disclosed. The 721 program is designed to offer investors access to high-quality medical office real estate that has the potential for long-term capital appreciation.
HAZEN, N.D. — The Neenan Co. has completed construction of a new 55,300-square-foot medical facility for Sakakawea Medical Center in Hazen in central North Dakota. The new facility integrates both a critical access hospital and a community health center. As a comprehensive medical center, the new facility will enable Sakakawea Medical Center to meet the primary care, diagnostic, emergency, surgical and acute care needs of the rural community while promoting the long-term well-being of the region through wellness and prevention programs. The facility has replaced a previous medical center built in 1969.
HOBART, IND. — Franciscan Alliance Inc. has acquired a 35,000-square-foot former hospital in Hobart, about 40 miles southeast of Chicago. The purchase price was not disclosed. Most recently known as Hind General Hospital, the single-story building has been vacant since 2014. The property is situated on 17 acres at the corner of 61st and Lake Park avenues. Michael Siwietz and Jeff Bennett of McColly Bennett and Steve Malley of Lee & Associates brokered the sale on behalf of ownership, Hanmi Bank. Ken Catellier of Tonn and Blank Construction Inc. represented Franciscan Alliance, which is a 14-hospital health system that includes clinics, home health services and doctors serving Indiana and Illinois.
IRVING, TEXAS — Code 3 Emergency Room and Urgent Care has begun work on an 8,160-square-foot, freestanding emergency room and urgent care center at the Dallas-Fort Worth (DFW) International Airport in Irving. The facility will be situated on 1.5 acres within Southgate Plaza, a 32-acre development that houses a 137-room Hyatt Place hotel and a 154,000-square-foot office building, as well as a variety of retail and restaurant options. The facility will be equipped with a CT scanner, Ultrasound equipment, laboratory and a pharmacy. The project represents the first development of its kind at an airport property in the United States.
OKLAHOMA CITY — McCarthy Building Cos. Inc. has begun work on a $150 million expansion of Oklahoma Heart Healthcare’s south campus in Oklahoma City. The project will deliver a six-story, 228,338-square-foot hospital tower on the campus’ west side, which will be occupied by healthcare provider Mercy. That building will offer 44 patient beds, eight cardiac care unit beds, two inpatient pharmacies, imaging and surgery areas and a chapel. The project will also deliver surface parking, a helipad and a 180-space parking garage. Completion is currently scheduled for 2020.