American Academic and Harrison Street Real Estate Form Strategic Joint Venture to Acquire Affiliated Portfolio of Four Medical Office Buildings and Two Parking Garages
PHILADELPHIA & CHICAGO–(BUSINESS WIRE)–American Academic Health System, LLC, an affiliate of Paladin Healthcare, today completed its previously announced acquisition of Hahnemann University Hospital, the teaching hospital for the Drexel University College of Medicine, and St. Christopher’s Hospital for Children, as well as its affiliated physician practices and other hospital-affiliated entities, from Tenet Healthcare Corporation.
Simultaneously, American Academic and Harrison Street Real Estate Capital, LLC, one of the largest real estate investment firms dedicated to the education, healthcare and storage sectors, have entered into a strategic joint venture under which they have acquired a portfolio of four medical office buildings and a parking garage on the Hahnemann University Hospital campus, and the parking facilities at St. Christopher’s Hospital for Children. American Academic has retained ownership of the hospital buildings, as well as one medical office building and two parking facilities.
“We are thrilled and proud to be the new owners of these venerable Philadelphia hospitals and the outstanding clinical and academic programs for which they are recognized,” said Joel Freedman, American Academic’s Founder and Chief Executive Officer. “We look forward to collaborating closely with Drexel University College of Medicine and the entire physician community, and are fortunate to have one of the nation’s most prominent community-centered investment firms in Harrison Street by our side. Philadelphia is among the most renowned health care centers in the United States, and we are privileged to be part of it.”
“We are energized and ready to get to work,” said Barry A. Wolfman, American Academic’s President. “We plan to do a lot of listening and learning as we continue to frame our vision for how we can best serve our patients, our physicians, our staff and our community. Our intention is to develop deep and enriching bonds in the region through which we will strengthen this historic health care system and elevate who we are and how we fit into the regional health care landscape. Serving children and adults when they need care is a privilege and one of the most rewarding things one can do. We look forward to working with all our dedicated employees and physicians at Hahnemann and St. Christopher’s to provide our patients with outstanding, compassionate care.”
“I am excited about our new relationship with American Academic Health System, its commitment to academic medicine, and its interest in improving the health of our community,” said John Fry, President of Drexel University. “I am confident our collaborative relationship will bolster the College of Medicine’s ability to carry out its academic mission.”
Mark Burkemper, a Director at Harrison Street, said, “This investment highlights Harrison Street’s commitment to supporting and developing high-quality health care properties that play vital roles in the communities they serve. Understanding the needs of patients, physicians and staff is a top priority and ensures they have access to the care, services and infrastructure needed to improve outcomes. We are excited to partner with American Academic and Drexel University, who have shared values and are committed to building upon Philadelphia’s reputation as a leading healthcare destination.”
About American Academic Health System, LLC
American Academic Health System owns or manages both academic and community-based acute care hospitals, including Hahnemann University Hospital, the teaching hospital for the Drexel University College of Medicine, and St. Christopher’s Hospital for Children in Philadelphia; Howard University Hospital, a 145-year-old teaching hospital located on the campus of Howard University in Washington, DC; and four general acute care hospitals in Southern California. American Academic is an affiliate of Paladin Healthcare, a national healthcare management company with a proven track record of building strong healthcare delivery networks in urban and suburban areas, including some of the nation’s most diverse communities facing healthcare challenges. For more information, please visit www.americanacademic.com.
About Drexel University
Founded in 1891 in Philadelphia, Drexel is a nationally-ranked, comprehensive research university recognized for its focus on experiential learning through cooperative education, its commitment to cutting-edge academic technology and its growing enterprise of use-inspired research. With more than 24,000 students, Drexel is one of the nation’s largest private universities. Its College of Medicine has established some of the most highly innovative and rigorous academic programs available today, incorporating the University’s expertise in engineering and technology into traditional medical training. The College of Medicine is home to one of the nation’s leading centers for spinal cord research; one of the foremost centers for malaria study; and a highly regarded HIV/AIDS program with extensive NIH-funded research in prevention and therapeutic interventions. Drexel University College of Medicine is highly respected in numerous other specialties, including cardiology and the neurosciences.
About Harrison Street Real Estate
Harrison Street Real Estate Capital LLC is one of the leading real estate investment management firms exclusively focused on the Education, Healthcare and Storage sectors. The firm has created a series of differentiated investment products across multiple risk/return strategies. Headquartered in Chicago with an office in London, the firm has 115 employees and has approximately $12.8 billion in assets under management. For more information, please visit www.harrisonst.com.
For American Academic Health System:
Gary Hopkins, 805-705-2586
For Drexel University:
Executive Director, Media Relations, University Communications
For Harrison Street:
Gasthalter & Co.
Jonathan Gasthalter/Nathaniel Garnick
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