CHARLOTTE, NC-Atlanta-based developer Meadows & Ohly LLC has received nearly $97.58 million in financing for the $121.7-million acquisition of a five-building medical office portfolio.

The properties totaling 650,000 sf were acquired from Novant Health and are located on three campuses, Presbyterian Hospital in Charlotte, Presbyterian Hospital Huntersville in Huntersville and Presbyterian Hospital Matthews in Matthews. The Atlanta office of the Woodlands, TX-based iCap Realty Advisors secured the long-term, non-recourse permanent loan with Column Financial. Mike Welty, a principal in the Atlanta office who specializes in healthcare properties, handled the transaction.

The properties acquired were the 88,000-sf Metroview building, 142,000-sf Presbyterian Medical Tower and the 220,000-sf Midtown Medical Plaza buildings in Downtown Charlotte; the 102,000-sf Physicians Plaza in Huntersville and the 98,000-sf Presbyterian MOB in Matthews.

Novant Health is one of the largest healthcare providers in the Carolinas, providing services through nine hospital campuses that service 3.4 million people in a 34-county area of North Carolina. Novant Health decided to sell the buildings to focus on their core business. "Meadows & Ohly emerged as the clear choice to be our new partner due to their focus on tenant satisfaction," says Carl Armato, CEO and president, Presbyterian Healthcare, a division of Novant Health in a statement regarding the acquisition.

In addition to the sponsor's high leverage requirement, five separate and very challenging, unsubordinated ground-lease agreements required creative structuring. Welty tells GlobeSt.com that the acquisition reflects a trend in the past five years of hospitals selling off easily converted assets to raise capital, but still maintaining control of the properties through ground leases. "Rather than raise capital through bonds, the hospitals decide to tap into the equity of buildings," Welty says.