CBRE FACILITATES $368 MILLION SALE OF IRET MEDICAL OFFICE BUILDING PORTFOLIO TO HARRISON STREET
CBRE announced today that it facilitated the $367.7 million portfolio sale of 25 medical office buildings owned by IRET, a real estate company based in Minneapolis and Minot, North Dakota, to Chicago-based Harrison Street Real Estate Capital LLC, (“Harrison Street”), one of the largest real estate investment firms dedicated to the education, healthcare and storage sectors. CBRE’s Healthcare Capital Markets Group, led by Chris Bodnar and Lee Asher, partnered with BMO Capital Markets to serve as advisors on the sale, which closed Dec. 29, 2017. Most of the healthcare properties included are located in the Twin Cities metro area, with additional facilities in North/Central Minnesota, Montana, North Dakota, Nebraska and Wisconsin.
“It’s very rare in our industry for over a million square feet of medical office assets to be offered in one portfolio, primarily located in one market. Many of these buildings are positioned on the campuses of the top health systems in the Minneapolis-St. Paul region, considered one of the top medical markets in the country. This was an exciting transaction to be a part of and transformational for both buyer and seller,” said Chris Bodnar, Vice Chairman, CBRE U.S. Healthcare Capital Markets.
Mark Burkemper, a Director at Harrison Street said, “This is a compelling investment opportunity to build scale in a premier medical market through a portfolio of high-quality properties. We look forward to working with our diverse, high-quality tenant base over the long-term to provide a high quality and enjoyable patient environment.”
The sale follows a November announcement by IRET that the company had entered into a purchase and sale agreement to sell its entire healthcare portfolio, which totals 29 medical office building and healthcare tenant-occupied properties. According to an IRET press release, the company plans to complete the sale of its remaining healthcare-related properties over the next six months as part of its transition to a multifamily-focused company.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated 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.
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