The Urology Center of the South near Memphis, TN was the first acquisition and a familiar one, as it was developed by Hospital Affiliates Development Corp., a subsidiary of Windrose Medical Properties Trust. The REIT followed up with four outpatient treatment centers in Las Vegas, NV the next day.
The fully-leased properties range from 26,000 sf to 58,000 sf.
Medical-related properties can attract multiple bidders, as evidenced by the sale of Advocate Health Care Group's 441,000-sf portfolio here that has been put under contract by Great Lakes REIT. However, Windrose sees clearer sailing in building its portfolio.
"We don't believe acquiring properties is a challenge," Windrose president and chief operating officer Frederick Ferrar tells GlobeSt.com. "The properties we tend to acquire are in the $5-million to $30-million price range, and therefore, there is not a lot of competition."
Ferrar adds Windrose was not a bidder in the chase for the Advocate portfolio, which drew numerous inquiries and reportedly will sell for about $60 million. The attraction, Great Lakes REIT officials say, is that tenants are extremely reluctant to move, especially if they have privileges at the adjacent hospitals.
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