MOB Transactions Roundup: Marcus & Millichap, Global Medical REIT
Global Medical REIT Inc. Provides Acquisition Update
Bethesda, Maryland-based Global Medical REIT Inc. recently announced that it closed two acquisitions during the first quarter of 2017 and also executed five purchase contracts, four of which were previously unannounced and were executed during the first quarter of 2017. All together, the closed acquisitions and purchase contracts involve nine buildings for an aggregate purchase price of $103,455,000.
After the successful closings of the acquisitions under purchase contract, Global Medical REIT’s gross investment in real estate will be about $310 million.
“I am happy to announce these acquisitions, which will add more than 258,000 square feet to our property portfolio once the acquisitions under purchase contract are closed, which we expect will occur in the first quarter,” CEO David Young said in a press release. “Following the expected closings, our gross investment portfolio will exceed $310 million, encompassing approximately 924,000 square feet of leasable space. With two months still remaining in the first quarter, this gives us great momentum as we push toward covering our dividend.”
The company closed the acquisition of a 28,480 square-foot clinic and imaging center in Lewisburg, Pennsylvania, on Jan. 12, and the acquisition of a 25,814 square-foot medical office building in Cape Coral, Florida, on Jan. 17.
The company executed a purchase contract on a 15,716 square-foot, orthopedic and imaging clinic in Las Cruces, New Mexico, and a 12,000 square-foot, two-tenant clinic in Prescott, Arizona.
The REIT expects to close on a 18,152 square-foot clinic in Clermont, Florida, in February, and a three-building, 100,401-square-foot portfolio in Oklahoma City, Oklahoma, in March. The Oklahoma City portfolio will be purchased for $49.5 million.
Marcus & Millichap Arranges Largest 2016 Medical Office Transaction in Michigan
Commercial real estate services firm Marcus & Millichap (NYSE: MMI) recently announced the $43.5 million sale of the Women’s Health Center of West Michigan, a four-story, Class A, 106,806-square-foot medical office building in Grand Rapids, Michigan.
Seth Haron, senior associate in Marcus & Millichap’s Detroit office, and Ashish Vakhariya, vice president investments and also in Detroit, represented the seller, procured the buyer, a private real estate investment trust. The seller was Pinnacle Construction Group.
The building, which is 93% occupied, is anchored by Grand Rapids Women’s Health and Metro Health OAM Surgery Center. The $43.5 million sales price represents the largest dollar value sale for a medical office deal in Michigan since 2014, according to a press release.
“The recent acquisition of Metro Health by the University of Michigan, along with the significant lease term remaining on the anchor tenants, generated a high level of interest in the asset,” Haron said in the press release. “The tenancy also includes hospital-based medical practices and a complementary mix of private physician groups.”
Benedict Realty Group Closes $60 Million East Coast Medical Office Portfolio Purchase
Benedict Realty Group recently closed on a $60 million purchase of 12 medical office buildings in Providence, Rhode Island, according to the New England Real Estate Journal.
The 12 buildings comprise 350,000 square feet, and are currently 100% occupied by medical office, university and technology tenants.
The 350,000-square-foot acquisition grows BRG’s portfolio of medical office buildings to a total of 600,000 square feet in 17 properties along the East Coast.
“BRG will continue to expand its medical office portfolio along the East Coast in the upcoming years,” BRG Principal Daniel Benedict said. “We will be purchasing on-campus medical office buildings, as well as medical buildings located in strategic locations close to hospitals and attractive target customer bases.”
Marcus & Millichap Facilitates $3.6 Million Sale of Medical Office in Dinuba, California
Marcus & Millichap recently arranged the $3.6 million sale of a 9,000-square-foot property net leased to DaVita Dialysis in Dinuba, California. An individual/personal trust purchased the building.
Marcus & Millichap’s Jamie Medress, Chris Lind and Mark Ruble represented the seller, a limited liability company. Marcus & Millichap’s Christopher Secreto and Jacob Becher represented the buyer in the transaction.
Capital Square 1031 Buys Medical Office Building in North Carolina
National real estate investment and management company Capital Square 1031 recently purchased a 8,200-square-foot, single-story medical office building in Louisburg, North Carolina. The building is 100% leased to an affiliate of Fresenius Medical Care (NYSE: FMS), a large provider of dialysis services and products.
The newly constructed building was built-to-suit for Fresenius as a dialysis clinic. Fresenius assumed occupancy of the property in October 2016, and leases it on a double net basis for a base term of 15 years, plus renewal options.
The property was purchased on a no debt, all-cash basis as part of a Delaware statutory trust offering, CS1031 Louisburg MOB, DST.
“We are pleased to add this medical office building to our growing portfolio of assets under management, which now includes 17 medical office buildings, and has a total value of approximately $571 million, based on investment cost,” Capital Square 1031 founder and CEO Louis Rogers said in a press release.
Marcus & Millichap Facilitates $1.1 Million Sale of Medical Office Building in Ohio
Marcus & Millichap recently arranged the sale of a 10,140-sqaure-foot medical office building in Boardman Township, Ohio, for $1.1 million. The buyer was not disclosed.
Paul Kerber, Ryan E. Moore and Christopher Mitchel marketed the asset, U.S. Oncology Inc., on behalf of the seller, a developer.
Written by Mary Kate Nelson