The $2billion deal between NHP and Pacific Medical calls for theNewport Beach-based REIT to acquire medical office buildings fromPMB in deals slated to close this year, next year and in 2010. Bythe time those sales close, NHP will have acquired $915 millionworth of the San Diego-based developer's medical office buildingsand will own exclusive rights to acquire up to an additional $1billion of buildings from Pacific Medical over seven years at adiscount through a development agreement. Nationwide bought thefirst seven assets of the $2 billion total from PMB for $120million last fall. This year's closings will bring the total to 22properties and $580 million; the REIT has agreed to acquire fourmore properties from PMB for $205 million in 2009 and two more for$130 million in 2010.

|

The agreement between NHP and PMB is "probably the largestmedical office building transaction ever," according to PhilipCamp, managing director with Shattuck Hammond. "In MOB sales, youraverage deal is a one-off transaction in the $10 million to $20million range," Camp observes, and even the larger transactions aretypically in the range of $100 million to $200 million.

|

The existing properties total about two million sf, with about90% of the assets on hospital campuses and with an overalloccupancy of about 94%. The properties yet to be built total twomillion sf.

|

A recent public filing by NHP says that the company "will obtainthe right, but not the obligation, to acquire up to $1 billion ofMOBs to be developed by PMB over the following seven years." Aspart of NHP's agreement with PMB, which was announced in February,the REIT also acquired a 50% stake in PMB's property managementdivision, PMB Real Estate Services.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.