Atlanta, GA

CBRE Brokers $91 Million Sale of Eight-Building Medical Office Portfolio

The portfolio features properties in four states

07 Apr 2022

Pictured is one of the properties sold as part of the portfolio.

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Ryan Salchert

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CBRE announced the $91 million sale of an eight-building medical office portfolio to a joint venture between Remedy Medical Properties and Kanye Anderson Real Estate.

Lee Asher, Chris Bodnar, Jordan Selbiger, Ryan Lindsley, Cole Reethof, Sabrina Solomiany and Zack Holderman with CBRE U.S. Healthcare and Life Sciences Capital Markets represented the seller, Spruce Healthcare.

Totaling 177,000 sq. ft., the portfolio features medical office buildings in four states including five in Florida and one each in Texas, North Carolina and Tennessee. The portfolio also is fully leased with 11 years of weighted average lease terms. Two-thirds of the overall tenancy is comprised of orthopedics, oncology, and imaging practices, which are high demand specialties with exceptional profitability. Other specialties include ophthalmology and dermatology, both of which include ambulatory surgery centers creating an ideal mix of acuity within the properties.

“We were able to procure a buyer with the flexibility needed to close on a complex transaction with multiple loan assumptions,” said Lee Asher, Vice Chairman at CBRE. “The portfolio reflects an exemplary collection of clinical specialties and higher acuity uses, combined with dominant tenancy and substantial remaining lease term that has become increasingly rare in a supply constrained medical office market.”

This portfolio sale comes just two months after Remedy Medical Properties and Kanye Anderson Real Estate acquired a majority interest in another large medical office portfolio through their joint venture. That portfolio, which spans 23 properties in 12 states, also was arranged by CBRE’s U.S. Healthcare & Life Sciences Capital Markets team.

About Remedy Medical Properties

Remedy Medical Properties is a full-service healthcare real estate company and the largest private owner of healthcare properties in the country, with over 26 million square feet and 23 offices spanning 42 states. For health systems and physician groups that want to maximize the value of their real estate while enhancing their ability to adapt, our national presence enables us to offer the right solutions in the right locations for your organization. Remedy offers unmatched flexibility in every client engagement, and our adaptability enables us to provide more options in ownership, development, leasing, management, and strategy. Our willingness to commit capital, share more risk, and offer greater foresight results in greater resilience, profitability, and peace of mind for our clients. For more information, visit www.remedymed.com.

About Kayne Anderson Real Estate

Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14 billion of real estate AUM (as of 1/31/22) across opportunistic equity, core equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $32 billion alternative investment management firm (AUM as of 1/31/22) with more than 37 years of successful experience in the real estate, renewable and energy infrastructure, energy, credit, and growth capital sectors. For more information, visit https://kaynecapital.com/real-estate/.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.