Transactions: Canadian REIT closes on $601.9M U.S. portfolio acquisition

Deal included 27 assets totaling 1.2M s.f.; Harrison Street was the seller, JLL the broker

By Murray W. Wolf

The NorthWest acquisition included 27 healthcare properties totaling about 1.2 million square feet in 10 U.S. states, including this two-story, roughly 72,000 square foot behavioral health hospital at 9400 Zane Ave. N. in the north Minneapolis suburb of Brooklyn Park, Minn. (Photo courtesy of PrairieCare)

Toronto-based NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) confirmed yesterday (April 19) that it has closed on its previously announced $601.9 million (U.S.) / $764.3 million (Canadian) acquisition of 27 healthcare properties totaling about 1.2 million square feet in 10 U.S. states.

The seller of the diverse portfolio of healthcare real estate (HRE) assets was the real estate private equity investment management firm Harrison Street, represented by the Healthcare Capital Markets team of Jones Lang LaSalle Inc. (NYSE: JLL).

“This large-scale transaction is another great example of Harrison Street’s longstanding strategy of acquiring and developing individual assets, executing on a defined business plan and exiting via strategic portfolio sales,” Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street, said in a news release from the firm.

“The successful sale of these diversified healthcare assets reinforces Harrison Street’s portfolio execution ability in multiple medical sub-sectors, the proven expertise of our talented team, and the strength of our deep partnerships with JVs (joint ventures) and operators, alongside whom we have worked diligently to execute on behalf of our investors.”

Harrison Street says the properties were held across several of the firm’s funds and are managed in coordination with five of its JV partners: Pisula Development, The Sanders Trust, MedProperties Group, Meridian Property Company and NexCore Group.

“Harrison Street is proud to have partnered once again with JLL’s Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states,” Mr. Mohns added in a news release from JLL.

$7.9 billion in MOBs

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