Nuveen US Cities Office Fund and an institutional capital partner have acquired a medical portfolio from IRA Capital for $462.9 million, according to Allianz, which structured the lending facility.

The portfolio totals over 747,000 rentable square feet consisting of  27  properties  across 13 states. They include Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Pennsylvania, Texas and Wisconsin. Twenty of the 27 properties are located in areas where local governments require an extensive approval process to prove that there is a need to develop new healthcare facilities. This process means there are high barriers to entry and regulatory restrictions around new supply.  

The portfolio is 99% occupied by 38 tenants. Ninety-two percent of those are investment-grade credit healthcare systems. In addition, the portfolio's rent roll has a weighted average unexpired lease term of 12 years.  The portfolio includes traditional medical offices, urgent care centers, outpatient surgeries and specialty treatment centers and specialty hospitals.