Chicago-based companies, NexCore and Heitman LLC have acquired a 671,811-square-foot medical office portfolio in California and Arizona for $114 million ($170 PSF) from Chicago's LaSalle Investment Management, the partners said late Friday.
The portfolio consists of 13 medical office buildings, about one-third of which is occupied by San Francisco's Dignity Health hospital system.
Nine of the buildings are located on Dignity Health hospital campuses, according to NexCore Group, LP, a national health care real estate firm based in Denver, and Heitman, a Chicago-based multinational real estate investment firm with $27 billion in assets under management.
Eight of the buildings are located in Southern California, located in Glendale, Northridge and Bakersfield, CA; the rest are in the Phoenix metropolitan area, located in Gilbert, Chandler and Phoenix, AZ. Dignity Health operates 38 hospitals in California, Arizona and Nevada.
"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, " said 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."
The two real estate partners say they have jointly purchased property worth more than $490 million.
"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, " said 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."
Arizona Medical Office Buildings:
Chandler Medical Office Building 43,376 rentable SF, 485 South Dobson Road, Chandler
Gilbert Health Center, 39,499 rentable SF, 150 N. Gilbert Road, Gilbert
Ahwatukee Foothills Health Center, 48,618 rentable SF, 4545 E Chandler Road, Phoenix
Sun Lakes Health Center, 40,768 rentable SF, 10440 E Riggs Road, Chandler
McAuley Medical Center, 168,511 rentable SF, 500 West Thomas Road, Phoenix
CBRE Group Inc.’s (NYSE: CBG) Healthcare Capital Markets Group in Los Angeles was marketing the portfolio on behalf of the unlisted real estate investment trust (REIT), according to hreinsights.com.