REIT and Canadian pension fund teamed up on $449 million MOB acquisition
By John B. Mugford
Among the eight buildings that were part of Health Care REIT/CPP’s $449 million medical office buildings portfolio acquisition during the second quarter was this four-story, 48,500 square foot facility at 9675 Brighton Way in Beverly Hills, Calif. (Photo courtesy of LoopNet.com)
It would not be accurate to say that a $449 million medical office building (MOB) portfolio transaction that took place during the second quarter (Q2) of 2015 went totally unnoticed.
But then again, not many details have been publicized about the deal in which Toledo, Ohio-based Health Care REIT Inc. (NYSE: HCN) teamed with Toronto-based Canada Pension Plan (CPP) Investment Board in a new joint venture (JV) partnership to acquire eight buildings with a total of 437,875 square feet in Southern California for a price that works out to a whopping $1,025 per square foot (PSF). The expected first-year yield, or capitalization (cap) rate, was about 5.8 percent, Health Care REIT officials said.
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