SUNSET HILLS, MO. — Bamboo Equity Partners has acquired a 52,000-square-foot medical office building in Sunset Hills, about 15 miles southwest of St. Louis. The building, located at 10777 Sunset Office Drive, is 91 percent occupied. Tenants include Mercy Hospitals, SSM and Sisters of St. Joseph. Bamboo plans to renovate the property, built in 1978, to improve common areas used by patients and healthcare providers. Bamboo Micro Opportunity Fund I LP was the entity used to acquire the property. The seller was not disclosed.
GRANT, NEB. — Darland has completed a three-year expansion and remodeling project at Perkins County Health Services in Grant in central western Nebraska. The 51,000-square-foot project included a 28,884-square-foot addition to expand services provided by the hospital. The two-story addition includes 20 patient rooms with dedicated spaces for labor and delivery; isolation and intensive care; an endoscopy suite; and a new emergency department with drive-up entrance. A new physical therapy area, cardio rehab center, conference room and IT office space are located in the lower level. Renovations to the existing hospital included a new laboratory, administration area, two updated operating rooms and a specialty clinic. The entire hospital also underwent a full mechanical upgrade. Avant Architects provided architectural services.
IRVINE, CALIF. — HCP (NYSE: HCP), an Irvine-based healthcare REIT, has closed on a new $2 billion unsecured revolving credit facility. The new facility reduces the company’s funded interest cost for committed loans by five basis points and has a maturity date of Oct. 19, 2021. Based on the company’s current senior unsecured long-term debt ratings, the facility bears interest annually at LIBOR plus 100 basis points and has a facility fee of 20 basis points. The facility also includes two six-month extension options and the ability to increase the commitments by an aggregate amount up to $750 million.
Healthcare facilities have become a mainstream investment asset class for private and institutional investors over the last decade. Healthcare assets with strong credit tenancy and on-campus locations are now fetching record pricing. Pressure from consumers, federal and state legislation and fiscal responsibility are driving changes in the delivery of healthcare services. Significant consolidation is occurring in the form of acquisitions and affiliations. The most visible and tangible change to the consumer has been the proliferation of urgent care facilities. Other drivers of healthcare facility construction include hospital operators pushing for their brands and facilities to be more convenient to the consumer. Increased focus on preventative care and consumers’ desire for quick and convenient access to services near work or home plays a role as well. These trends are relevant and visible in the 2017 El Paso healthcare market. Population Growth Leads Historically, El Paso ranks among the nation’s fastest-growing metropolitan areas, averaging decade-over-decade growth of 21 percent from 1960 to 2010. The MSA, composed of El Paso County and the more recently added Hudspeth County, is projected to hit nearly 883,000 residents by 2019. In 2014, when El Paso data was combined with data from sister city Ciudad Juárez and …
PLAINFIELD AND DANIELSON, CONN. — A national healthcare real estate company has purchased three medical office buildings in Plainfield and Danielson in two separate transactions for an undisclosed price. Two of the properties were sold by Day Kimball Healthcare as part of a sale-leaseback, while the third property was sold by PGLC LLC, a physicians group. Day Kimball Healthcare also executed a long-term lease for the third property. The three properties offer a total of 45,000 square feet. Lisa Menin of Jacobson Properties, John LaBella of RE/MAX Right Choice and Leo Jones of Cushman & Wakefield/Pyramid Brokerage Co. advised Day Kimball in the transaction.
SCHAUMBURG, ILL. — CBRE has arranged the sale of the American Academy of Dermatology (AAD) headquarters in Schaumburg for an undisclosed price. The 44,000-square-foot medical office property is located at 930 E. Woodfield Road. The association will remain in the property through a short-term leaseback, then relocate to a new 41,459-square-foot office at O’Hare Gateway Center in Rosemont next spring. The association has a membership base of 19,000 physicians worldwide. Peggy McTigue and Dan Bessey of CBRE represented AAD in the sale. Terry Mostrom and Jon Azuley of Savills represented the buyer, Emergency Nurses Association. The organization purchased the building with plans to relocate from Des Plaines in 2018. In addition, McTigue and Paul Diederich of CBRE represented AAD in its lease transaction at O’Hare Gateway. Dan Svachula and Jim Ward of Cushman & Wakefield represented the undisclosed landlord.
LAKE BLUFF, ILL. — Avison Young has arranged the sale of the Carriage Point Medical Complex in Lake Bluff, about 35 miles north of Chicago. The sales price was not disclosed. The 93,903-square-foot medical office building is located at 101 Waukegan Ave. Anchored by Fresenius Medical Care, the property is 100 percent leased to several regional healthcare providers. Erik Foster, Mike Wilson and Tim Henry of Avison Young represented the seller, Franklin Partners. J. Emil Anderson & Sons Co., a Chicago-based developer and owner, purchased the property.
BETHESDA, MD. — Capital One has provided $311 million in financing to recapitalize a 28-asset medical office building portfolio located across 11 states. The portfolio was 95 percent leased to 150 tenants at the time of sale, with eight of the buildings each occupied by a single tenant. The borrower was a joint venture between an institutional investor and another joint venture between Kayne Anderson Real Estate Advisors and MB Real Estate Healthcare, which previously owned the 1.5 million-square-foot portfolio. Six of the 28 buildings are located on or adjacent to a health system campus. In addition to the principal loan, the financing included a loan for one property that required separate financing due to ground-lease restrictions.
TRUMBULL AND STRATFORD, CONN. — Jacobson Properties and RE/MAX Right Choice have arranged the sale of Fairfield County Medical Office Building Portfolio, a two-building medical office portfolio in Trumbull and Stratford. A private healthcare REIT acquired the portfolio for an undisclosed price. Advanced Radiology anchors the 80,000-square-foot portfolio. Additional tenants include Yale New Haven Health and Ascension Health. At the time of sale, the portfolio was 94 percent occupied. Lisa Menin of Jacobson Properties and John LaBella of RE/MAX Right Choice represented the undisclosed sellers in the deal.
BURR RIDGE, ILL. — Krusinski Construction Co. has broken ground on a new 25,000-square-foot rehabilitation center for the Shirley Ryan AbilityLab in Burr Ridge, a southwestern suburb of Chicago. Formerly known as the Rehabilitation Institute of Chicago, the center will treat individuals with complex disabilities through a model of integrated research, education and patient-centered care. MedProperties Group is the project developer. Other project team members include architect HDR, civil engineer Manhard Consulting and electrical engineer Gage Consulting Engineers. Completion is slated for March 2018.