A medical office portfolio comprised of 23 properties in four states have changed hands in three separate deals valued at approximately $90 million.
Commercial brokerage firm CBRE reports that it represented the seller in the three transactions that involve more than 300,000 square feet of medical-related space.
The traded properties include the Greenleaf Center Medical Portfolio in the Chicago metropolitan Area, the Dermatology Solutions Group Portfolio in multiple markets in Florida and Alabama, and 2061 Peachtree located in Atlanta. The seller’s exclusive advisors for the three deals were Lee Asher, Chris Bodnar, Sabrina Solomiany, Shane Seitz, and Ryan Lindsley of CBRE U.S. Healthcare Capital Markets.
“We continue to see very strong interest in the market for healthcare real estate assets, and investors have allocated a substantial amount of capital to the sector this year. Consistent with previous years, pricing and demand for healthcare investment properties continues to be strong with steady cap rates year-over-year,” says Asher, vice chairman at CBRE.
The Greenleaf Center Portfolio consists of 13 medical office buildings clustered around a high traffic intersection within the Chicago metropolitan area. The buildings total 197,385 rentable square feet and were 93% leased at the time of sale, with 44% of the rentable space leased to investment grade-credit and health system tenants. CBRE reports the property was sold to an unnamed institutional fund.
The Dermatology Solutions Group Portfolio consists of eight dermatology facilities totaling 51,505 rentable square feet located in Florida and Alabama. The properties were 100% leased to Dermatology Solutions Group with a new 10-year lease which was signed by the physician practice at closing. The buyer of the portfolio was an unnamed public healthcare REIT, according to CBRE.
2061 Peachtree is a five-story class A medical office building located in the highly affluent South Buckhead area of Atlanta. The 47,936 rentable square foot building was built in 2013 and is adjacent to Piedmont Atlanta Hospital. At the time of sale, the property was 100% leased to a diverse set of tenants, including Georgia Hand, Shoulder & Elbow (GHSE), the largest hand and upper extremity practice in Georgia. The property was purchased by an unidentified REIT, according to CBRE.