Portfolio had a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital with nine properties in Arizona; six in Tucson.
TUCSON, ARIZONA – Harrison Street Real Estate sold six medical properties in Tucson for an aggregate total of $58,488,000 to NorthWest Healthcare Properties REIT as part of a larger $600 million medical property portfolio. The Tucson sale included two micro-hospitals and four medical office buildings as follows:
- Micro-hospital at 7475 S Wilmot Road in Tucson sold for $20.22 million ($648 PSF)
- Micro-hospital at 5620 W Cortaro Farms Road in Tucson sold for $20.444 million ($676 PSF)
- Medical Office Building at 4892 N Stone Avenue in Tucson sold for $7.13 million ($371 PSF)
- Medical Office Building at 551 W Magee Road in Tucson sold for $3.45 million ($323 PSF)
- Medical Office Building at 1055 La Canada Drive in Green Valley sold for $3.88 million ($162 PSF)
- Medical Office Building at 1704 West Anklam Road in Tucson sold for $3.37 million ($248 PSF)
JLL’s Healthcare Capital Markets group announced that it closed the $600 million sale of a 27-property, best-in-class, core-quality healthcare real estate portfolio totaling 1.2 million-square-feet in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma and Texas markets.
JLL marketed the portfolio on behalf of the seller, Harrison Street. NorthWest Healthcare Properties acquired the assets.
“Harrison Street is proud to have partnered once again with JLL’s Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states,” said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. “The successful sale of these diversified healthcare assets reinforces the strength of Harrison Street’s ongoing partnership with JLL, and the portfolio execution ability of our talented team who have worked diligently to execute on behalf of our investors.”
The portfolio has a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital. The portfolio includes nine properties in Arizona; five properties in Texas and Illinois; two properties in Florida and one property each in Minnesota, Massachusetts, California, Oklahoma, Colorado and Indiana.
The portfolio is 97% occupied by key healthcare providers, including Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare.
The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach and Managing Directors Tim Joyce and Brannan Knott, with support from Vice Presidents Trent Jemmett and CJ Kodani. Local support was provided by JLL licensed brokers in each location.
“The offering was well received due to its scale and the mix of medical office and acute care facilities,” Berman said. “Healthcare assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords.”
To learn more, see RED Comps #9779, #9780, #9781, #9782, #9783 and #9784.
PHOTO #1: Marana Micro-Hospital, 5620 W Cortaro Farms Road; #2: Micro-Hospital, 7475 S Wilmot Road.