Nuveen-NexCore acquire MOB and life science portfolio for $620.4M; price for the 27 MOBs was $463M
By John B. Mugford
The 119,000 square foot, two-MOB North Hills Health Center in Menomonee Fall., Wis., near Milwaukee, was one of the properties acquired by the Nuveen-NexCore Group partnership. It is fully occupied by locally based Froedtert Health. (Photo courtesy of NexCore)
After a rather lackluster first half of 2021 for medical office building (MOB) sales, the year’s largest deal to date is grabbing plenty of headlines.
And rightly so, as a partnership of Chicago-based Nuveen Real Estate, one of the five largest global real estate investment managers, and Denver-based NexCore Group LLC, last week closed on the acquisition of a $620.4 million purchase of MOBs and life science facilities.
The deal comprises 29 assets in 13 states with a total of 1.165 million square feet of space.
As for the MOB portion of the portfolio, it includes 27 facilities in 13 states with a total of more than 747,000 square feet of gross leasable space. The price for the MOB portfolio was $463 million, making it the largest MOB transaction so far in 2021.
According to Allianz Real Estate, which provided the buyer with a $234 million loan for the purchase of the MOBs, 20 of the MOBs are in states with Certificate of Need (CON) requirements, meaning they are in high barrier-to-entry markets.
The price for the two life science facilities, which are in Aliso Viejo, Calif., and Madison, Wis., was $157 million, according to professionals involved in the sale.
The MOB portfolio is
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