LOS ANGELES—CBRE Global Investment Partners (GIP) said Wednesday it had taken a 95% stake in a 25-building medical office portfolio from a venture of Kayne Anderson Real Estate Advisors and MB Real Estate Healthcare. The purchase price was not disclosed; however, the Wall Street Journal cited estimates ranging between $510 million and $590 million.
GIP will partner with the KAREA/MBRE Healthcare platform to continue creating value through leasing and repositioning. The new partnership will focus on providing solutions to strengthen relationships with tenants and targeting capital expenditure in areas that create and improve the patient experience.
“The medical office sector has seen strong demand due to demographic drivers that have heightened consumer demand for health care,” says Ian Gleeson, CIO of GIP. “Additionally the medical office sector features high tenant retention rates as tenants invest significant capital in their spaces and prefer to remain in the same location that is convenient for their patient base. We are pleased to partner with Kayne Anderson and MB Real Estate in this venture, given their strong relationships with key tenants and industry participants.”
KAREA and MBRE Healthcare will continue to operate the portfolio and hold a 5% ownership. The two firms have partnered on more than 10 million square feet of medical office acquisitions over the past four years; the portfolio they're selling to GIP comprises 1.4 million square feet of existing space across 10 states and a 150,000-square-foot development project, with key concentrations in the Atlanta and Chicago markets. It's currently 95% occupied by a mix of national and regional healthcare tenants.
The WSJ reported that this marks GIP's first acquisition of a medical office portfolio. Evercore acted as financial advisor to KAREA/MBRE Healthcare, and Lee Asher and Chris Bodnar with CBRE's Healthcare Capital Markets Group were advisors on the transaction.
LOS ANGELES—CBRE Global Investment Partners (GIP) said Wednesday it had taken a 95% stake in a 25-building medical office portfolio from a venture of Kayne Anderson Real Estate Advisors and MB Real Estate Healthcare. The purchase price was not disclosed; however, the Wall Street Journal cited estimates ranging between $510 million and $590 million.
GIP will partner with the KAREA/MBRE Healthcare platform to continue creating value through leasing and repositioning. The new partnership will focus on providing solutions to strengthen relationships with tenants and targeting capital expenditure in areas that create and improve the patient experience.
“The medical office sector has seen strong demand due to demographic drivers that have heightened consumer demand for health care,” says Ian Gleeson, CIO of GIP. “Additionally the medical office sector features high tenant retention rates as tenants invest significant capital in their spaces and prefer to remain in the same location that is convenient for their patient base. We are pleased to partner with Kayne Anderson and MB Real Estate in this venture, given their strong relationships with key tenants and industry participants.”
KAREA and MBRE Healthcare will continue to operate the portfolio and hold a 5% ownership. The two firms have partnered on more than 10 million square feet of medical office acquisitions over the past four years; the portfolio they're selling to GIP comprises 1.4 million square feet of existing space across 10 states and a 150,000-square-foot development project, with key concentrations in the Atlanta and Chicago markets. It's currently 95% occupied by a mix of national and regional healthcare tenants.
The WSJ reported that this marks GIP's first acquisition of a medical office portfolio. Evercore acted as financial advisor to KAREA/MBRE Healthcare, and Lee Asher and Chris Bodnar with CBRE's Healthcare Capital Markets Group were advisors on the transaction.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
