Newmark Grubb Knight Frank (NGKF) Global Healthcare Services recently completed the sale of medical office properties located in Wisconsin, Missouri, Colorado and Oregon that traded for a total of $163.7 million at an average of more than $294 per square foot.
In addition, the team’s executive managing director, Todd Perman, represented Flint River Hospital in Montezuma, Georgia, in a $5.8 million sale leaseback of its 45,804-square-foot facility that resulted in a $129-per-square-foot transaction. The hospital owner, RHG Property Investors, sold the facility to Flint River Healthcare Investments, generating capital for the hospital’s strategic business plan for operating in a continuously changing healthcare environment.
“All of the properties sold at prices that were higher than the client’s expectations, which testifies to the intensifying demand for healthcare in all areas of the country, as well as the prime Class A quality of the individual assets,” said Mr. Perman. “We see that demand continuing to escalate for the foreseeable future.”
Among the other transactions, the national Global Healthcare Services team negotiated the $69.98 million sale of the 250,809-square-foot Patient First portfolio in Washington, Missouri, which included seven smaller offices elsewhere in the state and a land parcel in Sullivan, Missouri. Mercy Health East Communities was the buyer. The team represented the seller, Creekside Land and Development.
In Wisconsin, the NGKF Global Healthcare Services team completed the $63 million portfolio sale of three medical office buildings occupied by Aurora Health Care, which were purchased by American Realty Capital V investment fund (ARC). The buildings, totaling 225,046 square feet, are located at 5300 Memorial Drive in Two Rivers, 1136 Westowne Drive in Neenah, and 1640 E Sumner Street in Hartford.
In Beaverton Oregon, NGKF Global Healthcare Services orchestrated the $23.7 million sale of 15700 SW Greystone Court, a 54,438-square-foot building occupied by Oregon Health & Science University’s Beaverton Cancer Center. The team represented seller Tempest Investments, LLC, and the buyer was Olympus Ventures, LLC in the $435-per-square-foot transaction.
In Greeley, Colorado, NGKF Global Healthcare Services sold the 58,031-square-foot Mountain Vista Medical Office Building to American Healthcare Investors (AHI) for $13.2 million. The building was occupied by Banner Healthcare.
“Healthcare reform, cost reduction initiatives and capital preservation are driving forces behind a trend in monetization of medical office properties owned by providers, hospitals and health systems,” Mr. Perman said. “Flint River Healthcare’s monetization of its facility will allow reinvestment in its core business, enabling the hospital to serve the community for the long haul.”
The NGKF team representing the sellers in the various transactions included Garth Hogan, executive managing director of Global Healthcare Services at NGKF in Newport Beach, Calif.; Clint Parker, managing director in San Antonio, Texas; and vice presidents Mark Winter and Chris Caulum in Madison, Wisconsin. In the case of Flint River Hospital, the team marketed the asset through a controlled bid process that created competition among potential buyers and garnered a sale price that exceeded the seller’s expectation, Hogan said.
NGKF Global Healthcare Services’ wealth of expertise and global reach enables the team to command top pricing in virtually every primary and submarket. In acquisitions and leasing, that same level of understanding and breadth positions the team to identify, evaluate and act on opportunities offering greatest value to clients. Specialists in real estate issues that affect hospitals, health systems, tenant requirements and healthcare legislation, the team is able to provide real estate strategies for optimizing utilization, compliance and cost reduction.
About Newmark Grubb Knight Frank
A part of BGC Partners, Inc. (NASDAQ:BGCP), Newmark Grubb Knight Frank is one of the largest commercial real estate service firms in the U.S. It brings together the strategic consultative approach to creating value for clients and leading position in the New York market that are hallmarks of Newmark; the complementary strengths of Grubb & Ellis in leasing and management, investment sales, valuation and capital markets services; and BGC’s financial strength, proprietary technology, expertise in global capital markets and deep relationships with many of the world’s leading financial institutions.
Newmark Grubb Knight Frank, together with its affiliates and London-based partner Knight Frank, employs more than 11,000 professionals, operating from more than 300 offices in established and emerging property markets on five continents. This major force in real estate is meeting the local and global needs of tenants, owners, investors and developers worldwide.