NINE STATES – New York-based BGO (BentallGreenOak) has acquired a portfolio of 11 ambulatory surgery centers (ASCs) in nine markets across the country.
The price was not disclosed for the 223,000 square foot, fully leased portfolio that BGO acquired from a joint venture (JV) of Charlotte, N.C.-based Flagship Healthcare Properties and Boston-based AEW Capital Management. Flagship will continue to provide third-party property management services for the portfolio.
Althoughthe parties involved did not disclose the price, industry sources tell HREI that the price per square foot (PSF) topped $600, meaning the overall price was likely more than $130 million.
BGO, a global real estate investment management firm, stated in a news release that it made the purchase on behalf of its “U.S. Core Strategy” fund, “expanding its healthcare real estate portfolio with a geographically diversified collection of purpose-built outpatient surgical facilities.” Prior to the acquisition, BGO had acquired seven MOBs in the previous 12 months for a total of about $106.8 million, according to healthcare real estate (HRE) data firm Revista and its RevistaMed subscriber service.
The properties are in the following markets: Dallas-Fort Worth; Chicago; St. Louis; Nashville, Tenn.; Lakeland-Winter Haven, Fla.; Columbia, S.C.; Huntsville, Ala.; Kalamazoo-Portage. Mich., and Prescott, Ariz.
According to BGO, the “assets include surgery centers with established affiliations with major health systems in their respective markets, as well as relationships with national ambulatory surgery center operators, combining local healthcare relationships with experienced operating platforms.”
The facilities provide what BGO describes as a “broad range” of outpatient procedures, including ophthalmology, orthopedics, gastroenterology, ear, nose and throat (ENT), podiatry, plastic and reconstructive surgery, pain management, urology and endoscopy, and others.
“We have strong conviction in ambulatory surgery centers as an increasingly important part of the U.S. healthcare delivery system, and we’re pleased to add a portfolio of this scale and geographic breadth to our U.S. Core Strategy,” said Michael Keating, managing partner with BGO.
“Transactions of this complexity require a high degree of coordination, and we’re grateful to the teams involved for helping us execute on behalf of our clients,” he added. “We also appreciate the work Flagship Healthcare Properties and AEW Capital Management have done to assemble and steward these assets, and we look forward to working closely with Flagship as it continues to manage the properties on our behalf.”
Representing the seller and brokering the sale was the U.S. Healthcare Capital Markets team with CBRE Group Inc. (NYSE: CBRE), whose team on the deal comprised Chris Bodnar, Brannan Knott, Zack Holderman, Anthony Sardo, Cole Reethof and Jess Greshin.
“This is a rare, institutional-quality ASC portfolio offering superior rent coverage ratios and elite health system partnerships,” said Mr. Knott, executive VP with CBRE. “With 45 percent of the assets located in top 20 MSAs (metropolitan statistical areas), coupled with the ongoing regulatory shift of complex procedures by CMS (Centers for Medicare & Medicaid) to the outpatient setting, this portfolio is perfectly positioned to outperform the broader industry.”
BGO says that the acquisition reflects its “continued conviction in healthcare real estate supporting the evolution of care delivery toward outpatient settings.”
News Release: BGO acquires 11-property ambulatory surgery center portfolio across nine U.S. markets
News Release: CBRE Facilitates Sale of 11-Property National ASC Portfolio
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