Atlanta, GA

CBRE Brokers Recapitalization of 1 Million Sq. Ft. Medical Office Portfolio

The portfolio consists of 23 properties across 12 states

10 Feb 2022

Pictured is Riverwalk I & II, one of the properties featured in this portfolio.

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Ryan Salchert

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CBRE has announced the recapitalization of a 1 million sq. ft. medical office portfolio consisting of 23 properties across 12 states. Chicago-based Remedy Medical Properties acquired a majority interest in the portfolio from Dallas-based MedProperties Realty Advisors, who will retain a minority interest, and continue as asset manager on behalf of the joint venture. Specific terms of the transaction were not disclosed; however, the transaction was in excess of $350 million in value.

Lee Asher, Chris Bodnar, Jordan Selbiger, Ryan Lindsley, Sabrina Solomiany and Zack Holderman of CBRE’s U.S. Healthcare & Life Sciences Capital Markets team represented MedProperties in the transaction.

The portfolio includes eight properties in Texas; two facilities in Pennsylvania, Florida, Ohio, Kentucky; and one property each in California, Missouri, Indiana, Tennessee, West Virginia, New York and North Carolina. Approximately 71 percent of the portfolio is leased to leading hospitals, health systems and investment grade organizations. The entire collection of properties was 94 percent leased at the time of sale with a weighted average remaining lease term of 8.3 years.

“This was a very complex transaction with lots of moving parts and multiple partnerships that all needed to come together with the right solutions-oriented mindset,” said Lee Asher, Vice Chairman at CBRE. “We were able to select the ideal joint venture partner that allowed MedProperties to maximize the value of the Portfolio while retaining an interest as the operating partner going forward. Medical office continues to be one of the most compelling investments in the alternative sectors of 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.