The locally based REIT paid Chevy Chase, MD-based Medical Office Properties Inc. $256 million for 22 properties totaling 1.3 million sf in seven states. The acquisitions price equates to $196.92 per sf, one of the highest average per-sf prices paid for a bulk portfolio of this category in the past 18 months, area brokers tell GlobeSt.com.
The average price paid for each of the properties is $11.6 million. The properties are in Florida, California, Colorado, Maryland, North Carolina, Texas and Virginia. The buildings are occupied by a total 345 tenants but their individual occupancy levels and ages were not disclosed in a prepared statement from Thomas J. Hutchison III, CEO and president of CNL Retirement Properties.
Despite the price paid, Hutchison calls the acquisitions "a significant step for CNL Retirement Properties Inc. and directly aligns with our long-term growth and diversification strategy." The CNL executive says his firm is looking for additional medical office building acquisitions to "further our investment position in this growing market."
CNL Retirement has been a major national player in the seniors housing investment market for the past two years. The company owns 164 properties in 30 states with an estimated portfolio value of $1 billion. CNL Retirement is an affiliate of locally based CNL Financial Group Inc. whose portfolio totals 4,500 properties valued at over $10.9 billion, according to Lauren Harris, vice president of marketing.
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