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Single-Tenant Healthcare Demand Continues

'Investors are attracted to the stability of the customer demand, strength of credit and high-quality real estate,' broker says.

By Michelle Napoli | Updated on July 09, 2009

MURFREESBORO, TN-With healthcare-related properties viewed by many as among the most stable types of properties these days, it should come as no surprise that single-tenant deals in the arena continue to attract attention from a variety of investors.

Among recent deals is a $55.5-million, four-property sale-leaseback portfolio being purchased by Murfreesboro, TN-based public REIT National Health Investors Inc. The skilled nursing facilities, all located in Texas and totaling 595 beds, are being sold by affiliates of Legend Healthcare LLC, which is already of a tenant of NHI’s. The REIT closed on the purchase of three of the facilities at the end of June and expects to close on the fourth by August 1. Legend is leasing the properties back for a 15-year term, at an initial rate of 10% plus annual increases, and has an option after seven years to repurchase the facilities.

In another healthcare-related transaction, Tulsa, OK-based Stan Johnson Co.’s Michael Cropper recently brokered the sale of a 5,916-square-foot medical building on behalf of its seller, MDG Development Group LLC for $2.8 million. The buyer, an individual investor in California, was represented in the deal by Travis Trautvetter of Marcus & Millichap Real Estate Investment Services Inc. The West Salem, OR property is a build-to-suit fully leased to Fresenius Medical Care.

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