CHICAGO AND LOS ANGELES — A joint venture between Remedy Medical Properties and Kayne Anderson Real Estate has acquired a portfolio of 37 healthcare properties from Broadstone Net Lease (NYSE: BNL), a diversified real estate investment trust with an industrial focus. The properties traded hands for $252 million. JLL served as the broker for the transaction.
The 37 properties were selected from a larger collection of healthcare assets designated for sale by Broadstone Net Lease. The properties are being sold as part of the REIT’s plan to focus on core net lease assets in the industrial, retail and restaurant sectors. As of March 31, industrial properties comprised 54.2 percent of the REIT’s portfolio.
The portfolio totals more than 708,000 square feet across 13 states. Each property is fully leased. The assets are situated in prominent markets that include: Chicago; Houston; Charlotte, North Carolina; Indianapolis; Seattle; Milwaukee; Tampa, Florida; and Arlington, Texas. The properties are leased by health systems and physician groups such as Advocate, Emerge Ortho, Froedert Health, IU Health, Tampa General, TGH Imaging and USPI.
The largest facility included in the portfolio is Ridgeway Medical Campus in Greece, New York, near Rochester. The multi-specialty outpatient medical center comprises 120,000 square feet and is fully leased to Rochester Regional Health.
“The portfolio features specialty uses and practices, including ambulatory surgery centers, imaging and surgical hospitals,” says Lee Asher, senior managing director, medical office for Kayne Anderson Real Estate. “Due to the high build-out costs and capital investment, these tenants have a high likelihood of renewing upon lease expiration. With durable annual net operating income growth, coupled with 100 percent occupancy in each facility, the assets will deliver a steady, predictable and growing income stream for years to come.”
BMO’s Healthcare Real Estate group provided a $175.6 million acquisition loan for the transaction.
Remedy is a full-service healthcare real estate company based in Chicago. The company’s portfolio currently consists of over 30 million square feet and 25 offices across 43 states.
Kayne Anderson Real Estate is part of Kayne Anderson, an investment management firm headquartered in Los Angeles. The firm manages approximately $15 billion in assets, with a focus on medical offices, seniors housing, student housing, multifamily and self-storage properties. Kayne Anderson was founded in 1984.
Broadstone Net Lease focuses on the acquisition of mission-critical, single-tenant commercial properties nationwide. The company’s stock price closed at $15.24 per share on Thursday, May 2, up slightly from $14.82 a year ago.
— Channing Hamilton