Remedy-Kayne acquiring 296-asset, 18 million s.f. Welltower portfolio
One of the larger MOBs in the Welltower portfolio is the four-story, 92,696 square foot John Muir Health outpatient center at 5860 Owens Drive in Pleasanton, Calif. The facility opened in 2002 and was acquired by Welltower for $35 million in 2022.
(Photo courtesy of Remedy Medical Properties)
By John B. Mugford
In recent weeks, speculation swirled in healthcare real estate (HRE) circles that a large transaction involving millions of square feet of medical outpatient buildings (MOBs) was in the works – a deal so large that at least one sector insider described it as “tectonic.”
Indeed, in a transaction that saw the first tranche close last Tuesday, Oct. 21, and which was officially announced Monday, Oct. 27, the longstanding partnership of Chicago-based Remedy Medical Properties and Boca Raton, Fla.-based Kayne Anderson Real Estate is acquiring a majority ownership interest in a portfolio of 296 medical outpatient buildings (MOBs) with more than 18 million square feet of space from one of the sector’s longest-standing players, Toledo, Ohio-based Welltower Inc. (NYSE: WELL).
The price is $7.2 billion, before any tenant purchase options or rights of first refusals (ROFRs), Peter Westmeyer, Remedy’s CEO, tells HREI™ in an exclusive interview about the transaction. The portfolio is 94 percent leased, he says, and includes a “high degree of health system occupancy,” with “numerous buildings being on or close to hospital campuses.”
The price makes the deal, undoubtedly, the largest arm’s-length transaction in the history of the MOB space.
It also establishes the Remedy-Kayne JV as not only the largest private owner of MOBs in the country, but the largest MOB owner of any kind, publicly traded or private.
Deal will increase JV’s portfolio to 1,104 properties
With the acquisition, which Mr. Westmeyer says will close in additional tranches during the next several months, the Remedy-Kayne portfolio will comprise
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