Portfolio includes five medical office and healthcare related buildings and one specialty hospital
(ORLANDO, Fla.) Aug. 29, 2013 – CNL Healthcare Properties, an investment offering focused on senior housing and healthcare real estate, has acquired a portfolio including five medical office buildings and one specialty hospital for $59.5 million. The properties are located in the Cleveland; Phoenix; Kansas City, Kan.; and San Diego, Calif., metropolitan areas.
The portfolio has a combined 181,890 square feet of medical facilities space, with a blend of well-leased single-tenant buildings and multitenant buildings. It is comprised of: Cleveland Clinic Chestnut Commons Medical Office Building in Elyria, Ohio; Doctors Specialty Hospital Medical Office Building in Leawood, Kansas; The John C. Lincoln Medical Plaza I and II and North Mountain Medical Plaza in Phoenix, Ariz.; and Escondido Medical Arts Center in Escondido, Calif.
The properties in Ohio, Kansas, and Phoenix will be managed and leased by the healthcare division of Holladay Properties, which manages more than 500 buildings in 25 states, including the LaPorte Cancer Center in Westville, Ind., which CNL Healthcare Properties acquired earlier this year.
Escondido Medical Arts Center will be managed by Lincoln Harris CSG, an affiliate of Lincoln Property Company, a national, full-service real estate company. The healthcare team of Lincoln Harris manages more than 19 million square feet of space across 26 states.
“We believe this acquisition will both expand and diversify our medical office and specialty healthcare portfolio with the addition of high-quality facilities in thriving metropolitan markets,” said Kevin R. Maddron, senior managing director for healthcare and senior housing properties for CNL Financial Group. “We view both management companies selected for these properties as highly respected in the industry, and we look forward to deepening our existing relationship with Holladay Properties and partnering with Lincoln Harris in the management of these facilities.”
Constructed in 2008, the Cleveland Clinic Chestnut Commons Medical Office Building, a 40,000-squarefoot, outpatient-oriented medical facility, is 100 percent leased by The Cleveland Clinic. Doctors Specialty Hospital is a Class A, 18,922-square-foot, high-end surgical hospital. The property is 100 percent leased by Patients First Health System, a regional and physician-owned provider of surgical services.
The John C. Lincoln Medical Plaza I, John C. Lincoln Medical Plaza II and the North Mountain Medical Plaza have a combined total of 73,666 square feet and are well-leased to multiple tenants including John C. Lincoln/Scottsdale Health. The John C. Lincoln Health Network, which occupies about 45 percent of the buildings, has recently formed a strategic alliance with Scottsdale Health System.
Located near the Palomar Medical Center hospital campus in Escondido, Calif., Escondido Medical Arts Center is a multitenant, 49,302 square foot outpatient medical office building built in 1994. The facility is well-leased with Graybill Medical Group, the largest independent primary care group in San Diego, occupying the majority of space in the building.
This marks the fourth medical office and healthcare-related facility portfolio acquisition for CNL Healthcare Properties this year. The company has now invested $149.7 million in 12 medical facilities.
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