CNL Spends $238M on Medical Portfolio

CHARLOTTE—CNL Healthcare Properties is closing the year with a big deal, closing one of the largest medical facilities transactions in the US this year. The REIT just bought a portfolio of nine class A medical office buildings across the Southeast for about $238 million.

Located across North Carolina and Georgia, the properties span about 907,300 square feet of rentable space and are 92% leased. Market share-leading health systems anchor all the properties.

“We believe the acquisition of this portfolio of medical office properties both allows us to expand our holdings with very high-quality on-campus assets and anchor health system tenants in attractive Southeastern markets, but also reaffirms our commitment to be a leader in this sector,” says Stephen H. Mauldin, president and CEO of CNL Healthcare. Meadows & Ohly, a developer and manager of healthcare real estate across, will continue to lease and manage the properties.

With these acquisitions, CNL Healthcare has now invested about $825 million in medical office buildings, acute care, and post acute care medical facilities. That makes the company one of the largest third-party owners of buildings in this asset class in the US. The acquisition also increases the size of the CNL's portfolio to 100 assets, including healthcare facilities and senior housing communities.

“The sale met the objectives of our investment partners and the long-term goals of our organization,” says Van Fletcher, vice president and principal of Meadows. “CNL Healthcare Properties has a deep capacity to execute complex transactions, understands the healthcare marketplace and will be an excellent long-term partner for the clients we serve together.”

The portfolio includes: Midtown Medical Plaza, Presbyterian Medical Tower, and Metroview Professional Building in Charlotte, primarily occupied by Novant Healthcare. In Huntsville, NC, CNL snapped up Physicians Plaza Huntersville and Matthews Medical Office Building, primarily occupied by Novant Healthcare.

Outpatient Care Center in Clyde, NC, occupied entirely by outpatient services groups owned by Haywood Regional Medical Center, a joint venture between LifePoint Hospitals and Duke Medicine, and located adjacent to Haywood Regional Medical Center, was also part of the deal. So was 330 Physicians Center in Rome, GA, which is fully leased to Floyd Regional Medical Center and the Harbin Clinic and housed within Floyd Medical Center.

Finally, CNL grabbed as part of the deal Spivey Station Physicians Center, an outpatient medical office building in Jonesboro and Spivey Station Surgery Center, an outpatient medical office building in Jonesboro, GA. Both assets are primarily leased to Southern Regional Health System.