Industry Pulse: 10-asset Rendina MOB portfolio on the market

JLL healthcare team is marketing six-state, 10-property, 489,301 s.f. portfolio

The 57,250 square foot Harker Heights Medical Pavilion in Killeen, Texas, is one of the MOB Rendina has put up for sale. (Photo courtesy of Rendina)

JUPITER, Fla. — One of the medical office building (MOB) sector’s long-standing, better-known development firms is putting a portfolio of properties on the market at a time when pricing remains as high as It’s ever been.

The Healthcare Capital Markets team from Chicago-based Jones Lang LaSalle (NYSE: JLL) is marketing the portfolio and representing the seller, Jupiter-based Rendina Healthcare Real Estate, which was launched by the late Bruce Rendina in 1998 after he had been in the business for 10 years. Today, the company, which continues to develop healthcare properties and is retaining the other assets in its portfolio, is led by Bruce’s son, Richard Rendina, chairman and CEO.

The portfolio being offered for sale has a total of 489,301 rentable square feet of space and has buildings in what JLL calls “key growth markets” in Texas, South Carolina, New Jersey, Arizona, Virginia and Illinois. A mix of “value-add and stabilized” facilities, the portfolio is 87 percent leased with 34 percent of the tenancy comprising “strong, investment grade non-profit national and regional health systems,” JLL notes. Eight of the 10 buildings are on hospital campuses, with one of the off-campus buildings having a strong health system affiliation.

Larger buildings in the portfolio include:

■ Physicians Plaza II, 8042 Wurzbach Road, San Antonio. The building has 65,777 square feet of space and is on the campus of Methodist Specialty and Transplant Hospital. It is 86.8 percent leased.

■ Bluffton Medical Campus, 75 Baylor Drive, Bluffton, S.C. the 58,504 square foot off-campus MOB is located on the road approaching Hilton Head Island. Hilton Head Regional Medical Center occupies 63.8 percent of the 86.8 percent occupied MOB.

■ Harker Heights Medical Pavilion, 800 West Central Texas Expressway, Killeen, Texas. The 57,250 square foot MOB is 100 percent leased and is on the campus of Seton Medical Center Harker Heights. Health system occupancy is 54.3 percent.

■ 6 Franklin Avenue MOB in Bellevue, N.J. The 53,363 square foot facility is 77.6 percent leased and is on the campus of Clara Maass Medical Center, part of RWJ Barnabas Health.

■ Canyon Vista MOB, 5750 E. Highway 90, Sierra Vista, Ariz. The 51,370 square foot on-campus MOB was completed by Rendina in 2015. It is 89.4 percent occupied by Canyon Vista Medical Center, part of RCCH Healthcare Partners.

JLL says that Rendina has “operated and maintained the properties to a high standard, creating strong tenant demand and hospital relationships, and reducing the need for capital to update and renovate the properties.” Rendina, JLL notes, has spent $5.5 million on capital improvements in the portfolio during the past two years.

The JLL team is being led by Daniel Turley, executive VP, Mindy Berman, managing director, Steve leathers, executive VP, and Brian Bacharach, executive VP.

For the JLL listing, please click here.

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