SAN FRANCISCO, SANTA ROSA, DALY CITY, ALAMEDA, GREENBRAE AND LOS ANGELES, CALIF. — Harrison Street has completed the disposition of a portfolio of eight medical office buildings valued at nearly $215 million across California. The properties were held across several of Harrison Street’s funds and managed in partnership with Pinnacle Capital Management Services. Totaling 380,000 rentable square feet, the portfolio is spread across San Francisco, Santa Rosa, Daly City, Alameda, Greenbrae and Los Angeles’ Van Nuys neighborhood. Tenants include leading regional health systems, such as Marin Health, Sutter Health, CommonSpirit Health and Kaiser Permanente. The seller invested more than $17 million in capital during its ownership, including recent building renovations, tenant improvements and leasing commissions. Chris Bodnar, Lee Asher, Jordan Selbiger, Ryan Lindsley, Sabrina Solomiany and Zack Holderman of CBRE’s U.S Healthcare & Life Sciences Capital Markets team represented Los Angeles-based Pinnacle Capital Management Services in the transaction.
Healthcare
TYLER, TEXAS — St. Louis-based general contractor McCarthy Building Cos. has topped out The Northeast Texas Cancer and Research Institute, an 85,000-square-foot healthcare project in Tyler, about 100 miles east of Dallas. The center is located on the CHRISTUS Mother Frances Hospital campus and will feature specialized areas for cancer treatment provider Texas Oncology, including 30,000 square feet of clinic space for medical, radiation and gynecologic oncology services, as well as nearly 3,000 square feet of space dedicated to research. The property will be equipped with three linear accelerators for radiation therapy, 52 chemotherapy infusion stations, four private rooms, a patient exercise area and a pharmacy with lab services. Construction began in May 2021 and is expected to be fully complete in September.
HAYDEN, IDAHO, AND LAYTON, UTAH — An affiliate of Livingston Street Capital has completed the disposition of two medical office properties, totaling 31,500 square feet, in Idaho and Utah. AEI Net Lease Portfolio 19 DST acquired the assets for $14.4 million. The properties, which include a 15,000-square-foot building at 8300 N. Cornerstone Drive in Hayden and a 16,500-square-foot building at 781 Heritage Park Blvd. in Layton, are both fully leased to BioLife Plasma Services, which collects the plasma that is processed into plasma-based therapies.
HOUSTON — Wolf Capital Partners has acquired Heights Medical Tower, a 120,000-square-foot medical office building in Houston’s Heights neighborhood. The location at 427 W. 20th St. puts the property across the street from The Heights Hospital. The new ownership will renovate the property to feature a new lobby, elevator cabs, spec suites, MEP systems and restrooms, while also rebranding the building as HeightsMED. Heins Properties’ Anthony Heins represented Wolf Capital Partners in the deal. Matthew Putterman of JLL arranged acquisition financing through Origin Bank. The seller was not disclosed. Transwestern has been tapped to lease the property. Completion of the capital improvement program is slated for mid-2023.
HOUSTON — Realty Trust Group, a healthcare real estate advisory firm with six offices across the Southeast, has expanded into Texas with the opening of a new office at 2200 Post Oak Blvd. in Houston’s Galleria neighborhood. Services offered will include healthcare real estate advisory, market analytics, project development, brokerage, property management and regulatory compliance support. Craig Flanagan, an industry veteran who joined Realty Trust Group in 2012, will lead the new office.
KENOSHA, WIS. — Physician Real Estate Capital Advisors (PRECAP) has brokered the sale of the Advocate Aurora Health Medical Building in Kenosha for $6.2 million. Aurora Medical Group Inc. (AMG) and MH Imaging fully occupy the 19,678-square-foot medical office building. Scott Niedergang of PRECAP and Nathan Glaisner of Verde Investments LLC represented both parties in the sale. The seller was a physician partnership that developed the facility for its private practice prior to its acquisition by AMG. A commercial real estate company focused on net lease retail, logistics and medical facilities was the buyer.
DALLAS — Dallas-based SRS Real Estate Partners has negotiated the sale of a portfolio of eight single-tenant properties occupied by Fresenius Medical Care for $56.5 million. The properties, which total more than 94,000 square feet, are located in Virginia, New York, Ohio, Texas, Georgia and Missouri. Matthew Mousavi, Patrick Luther and Stephen Sullivan of SRS represented the seller, Kingsbarn Realty Capital. The buyer was undisclosed. Fresenius provides products and services for individuals with renal diseases.
Healthcare Realty Trust, Healthcare Trust of America Agree to Merge, Forming $11.6B Medical Office Building REIT
by John Nelson
NASHVILLE, TENN. AND SCOTTSDALE, ARIZ. — Healthcare Realty Trust Inc. (NYSE: HR) and Healthcare Trust of America Inc. (NYSE: HTA), two of the larger owners of medical office buildings in the country, have agreed to merge. Upon closing, the combined company will operate under the Healthcare Realty name and use the same stock exchange ticker symbol of “HR,” as well as keep its headquarters in Nashville with offices in Charleston and HTA’s current headquarters of Scottsdale. The combined company is expected to have a pro forma equity market capitalization of approximately $11.6 billion upon the close of the transaction, which is expected to occur in the third quarter pending approval from the shareholders of both companies. The boards of directors of both Healthcare Realty and HTA unanimously approved the merger. With 727 properties totaling 44 million square feet, the new company will be the largest “pure-play” real estate investment trust specializing in medical office buildings (MOB), with nearly double the square footage of the next-largest MOB portfolio. The company will own the largest portfolio of on-campus or adjacent to hospital campus properties comprising 28.2 million square feet. Additionally, 94 percent of the portfolio will be concentrated in the top 100 …
The famed stability of healthcare and medical office building (MOB) real estate continues in 2022, with the Midwest acting as a microcosm for the sector’s trends and challenges nationwide. Adapting to complement large healthcare system needs, adding urgent care centers and keeping costs low are some of the main concerns for brokers this space. Five healthcare/MOB brokers sat down with REBusinessOnline to discuss what is influencing the sector. Michael Kalil, chief operating officer and director of brokerage, and Jeff Cavazos, senior vice president, NAI Farbman, Southfield, Mich.; Matthew Gregory, senior VP office brokerage, and Michael Simpson, president, NAI Ohio Equities, Columbus, Ohio; and Doug Taatjes, partner/associate broker, NAI Wisinski of West Michigan, Grand Rapids, Mich. weighed in on the present and future of healthcare/MOB real estate. REBusiness: What trends are we going to see in healthcare in 2022? What factors might influence further investment in this field? Matt Gregory: Improvements to building infrastructure will be the most significant trend in 2022. There will be a push toward better HVAC filtration, higher cleaning standards and so forth. Mike Simpson: Yes, I think the healthy building initiative is something that’s going to pick up more momentum this year. Doug Taatjes: In our …
WHITEHALL, WIS. — Kraus-Anderson will begin construction in March on Gundersen Tri-County Hospital, a new hospital for Gundersen Health System in Whitehall, a city in western Wisconsin. The new facility will replace the current 60-year-old hospital, which serves Whitehall, Blair, Independence and surrounding communities. Completion is slated for fall 2023. Designed by Groth Design Group, the two-story property will span 69,000 square feet and will feature private patient rooms, a trauma center and helipad landing zone. The hospital will offer an ER, imaging, lab, pharmacy, surgical, dietary, rehabilitation and transitional care. A new ambulance and maintenance building will also be constructed on the site.