MEMPHIS—CNL Healthcare Properties has acquired four medical office buildings in or near Knoxville. Affiliates of N.T. Brinkman sold the healthcare real estate to CNL for $57.3 million.
The four medical office buildings are part of the Tennova Healthcare system, which is a subsidiary of Health Management Associates (HMA). HMA is the third largest for-profit health system in the United States by total market capitalization.
“The acquisition of the Knoxville medical office properties allows us to expand our medical office portfolio in a well-established healthcare market,” says Stephen H. Mauldin, president and CEO of CNL. “We are delighted that N.T. Brinkman will continue to manage these properties and look forward to growing our partnership with one of the leading companies in this sector.”
The healthcare real estate assets span more than 200,000 square feet of modern, class A, medical office space and include the Physicians Plaza A at North Knoxville Medical Center, Physicians Plaza B at North Knoxville Medical Center, Jefferson Medical Commons, and Physicians Regional Medical Center – Central Wing Annex. An N.T. Brinkman affiliate will continue to manage the healthcare real estate.
Located in Powell, Tenn., the Physicians Plaza A at North Knoxville Medical Center was built in 2005 and is about 67,410 square feet. The building houses a combination of hospital-owned and independent physician tenants, the majority of which have signed long-term lease extensions for the next five to 10 years. Physicians Center Plaza B at North Knoxville Medical Center was constructed in 2008.
The North Knoxville Medical Centers are part of a larger, mixed-use campus featuring hotels, retail and additional outpatient medical buildings. The campus is located approximately 10 miles north of Downtown Knoxville and is next to Interstate 75.
Built in 2001, Jefferson Medical Commons in Jefferson City, Tenn., is a three-story building with direct connections on each floor to the adjacent acute care hospital. The building contains 15 individual physician office suites. It is located next to U.S. Route 11, a major east/west thoroughfare across eastern Tennessee and the Southeast.
Physicians Regional Medical Center – Central Wing Annex in Knoxville, Tenn., is a two-story medical office building that was constructed in 2004 and sits above existing hospital acute care space. The building houses the offices of the hospital-owned cardiology practice.
The healthcare real estate grab marks the third medical office building portfolio acquisition for CNL Healthcare Properties. In January, the company purchased a medical office building in southern California, and it recently purchased a cancer care center in Indiana.