LOS ANGELES-A joint venture between NexCore Group LP and Heitman LLC has acquired a 671,811-square-foot medical office portfolio for $114 million. The portfolio has 13 buildings in California and Arizona, including several buildings occupied by Dignity Health, the nation's fifth largest healthcare provider.
“With the resurgence in the Arizona and California real estate markets and with the continued growth in the healthcare sector, we are excited to manage this portfolio,” says Greg Venn, CEO of NexCore Group. “We will bring new capital improvements to the project and a new pride of ownership that reflects the quality tenancy in the buildings.”
Eight buildings are located in Glendale, Northridge and Bakersfield, CA and the remaining five buildings are located in Gilbert, Chandler and Phoenix, AZ. In most of these markets, population growth is expected to exceed the national average over the next five years, and five markets are expected to have double-digit population growth. This population growth in addition to Dignity's presence in the portfolio made it an attractive acquisition opportunity for this joint venture.
“We believe our team can provide significant value to this portfolio by strategically working with Dignity to attract and retain the physician groups and tenants that will add value to their brand and their positioning in the market,” says Venn. “We will strive to maintain the 13 facilities to the highest quality standards to reflect the Dignity brand.”
In other medical building news, GlobeSt.com reported earlier that Montecito Medical purchased the UCLA outpatient facility in Santa Monica for $54 million, or $1069 per square foot. This is the first medical building acquisition outside of New York to exceed $1000 per square foot.
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Kelsi Maree Borland
