BETHESDA, MD–After a brief hiatus in its deal-making, locally-based Global Medical REIT has closed on a 155,600-square foot, four-asset medical office building portfolio in Ohio, paying $64.2 million.
The acquisition brings the REIT's overall gross portfolio size to approximately $600 million.
Under the deal, Global Medical REIT has assumed the seller's interest, as lessor, in four leases with Marietta Memorial Hospital, a subsidiary of the Memorial Health System, which is the primary hospital provider in the area. According to a regulatory filing, the deal also includes a right of first refusal to purchase a fifth building that hasn't been developed yet. Global Medical REIT entered into a purchase agreement for these properties earlier this year with several LLCs including the Minnite Family, LLC.
The leases on the Belpre Portfolio are triple-net with a weighted average remaining term of 11.35 years, each subject to three, five-year renewal options by the tenant. The current aggregate annual rent is approximately $5.1 million. The initial capitalization rate for the property is approximately 7.9%.
“This acquisition fits squarely into our primary investment strategy of acquiring medical office buildings in secondary and tertiary markets with strong tenants,” says CEO Jeffrey Busch in a prepared statement.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
