CHICAGO-Lillibridge Healthcare Services Inc. has made its first acquisition since it was acquired by Ventas Inc. earlier this year.
The company, which is now a wholly owned subsidiary of Ventas, paid $36.6 million for a portfolio of five medical office buildings totaling 225,000 square feet. The acquisition was funded with cash on hand.
Lillibridge declined to disclose the seller, but source say Birmingham, AL-based Sanders Trust was the previous owner. Investment bank Cain Brothers marketed the portfolio.
Located on the campuses of ThedaCare hospitals in Appleton and Neenah, WI, the MOBs range from 30,000 square feet to 60,000 square feet. The buildings, which were developed between 1983 and 2006, are 98% leased. The hospital occupies roughly 60% of the properties, according to Vincent Cozzi, chief investment officer.
Cozzi tells GlobeSt.com the portfolio adds about 3% to the company’s existing MOB platform, which consists of about 8.4 million square feet. “Eventually, we’d like to get our MOB assets to account for 15% of the company’s NOI,” he says.
The acquisition also marks Lillibridge’s entrance into Wisconsin and the creation of a new relationship with ThedaCare. “The allure of this portfolio is really the quality of the hospital system and its position as market leader,” Cozzi says. “ThedaCare is a hospital system that is innovative in its delivery of care.”
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