The portfolio, which is about 82% occupied, will be managed by Broe's medical office management division, InSite Properties. InSite is a 25-year old company managing more than 1.5 million sf of medical office buildings.
Nationwide owns other types of healthcare properties but has been looking for "the right opportunity to diversify into medical office buildings," according to Douglas Pasquale, the REIT's president & CEO. Buying medical office buildings has been "problematic" for Nationwide until now because it does not have a medical office management division, but by teaming with Broe, it solves that problem, Pasquale says.
The joint venture hopes to acquire several more medical office properties soon, says Donald Bradley, an SVP and chief investment officer at NHP. The REIT hopes to make medical office buildings a part of its core business, he says.
Terms of the Nationwide-Broe joint venture acquisition were not disclosed. Nationwide's other investments include 422 facilities in 39 states.
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