NEW YORK CITY-American Realty Capital Healthcare Trust has closed on three facilities--located in Nevada and Arizona--for a total purchase price of $60.9 million. The sale represents 241,000 square feet in properties that are 92% leased.
With these properties, ARC Healthcare has closed on six assets, totaling almost $69 million since beginning its IPO. The properties in this portfolio are a multi-specialty medical campus in Carson City, NV, bought for $29 million; a medical office building in Las Vegas, NV bought for $22.9; and an inpatient rehab in Phoenix, AZ bought for $9 million.
Todd Jensen, chief investment officer at ARC Healthcare Trust, tells GlobeSt.com all three are in keeping with its mandate. “First of all they are all within the healthcare sector,” he says. “Our clearest mandate is to not drift from our focus on investing in income producing healthcare facilities. But our goal is to have a diversified portfolio of healthcare properties and this acquisition certainly accomplishes that.”
The properties are diverse, he says, because of their functions--for example, surgery centers with outpatient functions, a rehab facility and a longer-term acute care facility.
The company’s IPO is ongoing, and Jensen says that it is “continuing to raise $1.5 billion in equity.” There are a number of other closings scheduled as part of this portfolio purchase. “We really are acquiring about a $257 million portfolio in a number of closings over a 7 month period,” he adds.
The Arizona and Nevada facilities are leased to 19 tenants and 11.5% of those leases expire by December 31, 2016. But Jensen says that this number is in line with what the company shoots for. “It’s hard to get zero leases expiring in a ten year period, so for us if only 10 percent of the leases expire over a ten year period we’re quite happy with that,” he says. “In this case, it’s about 10% that expire over the next five years but more than 30% have lease terms beyond 10 years. Typically our lease term is going to be a little bit longer than what you see in this piece of the portfolio but this is still very acceptable to us.”
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