Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWPORT BEACH, CA-Nationwide Health Properties has closed on six assets in the health care, seniors housing and medical office REIT’s previously announced deal to acquire up to $2 billion in existing and planned medical office properties from Pacific Medical Buildings of San Diego. NHP closed on six of the 15 properties that it plans to acquire from PMB this year for a combined total of $460 million, according to Shattuck Hammond Partners, the New York City-based investment bank that provided advisory services and due diligence to NHP on the acquisitions.

The $2 billion deal between NHP and Pacific Medical calls for the Newport Beach-based REIT to acquire medical office buildings from PMB in deals slated to close this year, next year and in 2010. By the time those sales close, NHP will have acquired $915 million worth of the San Diego-based developer’s medical office buildings and will own exclusive rights to acquire up to an additional $1 billion of buildings from Pacific Medical over seven years at a discount through a development agreement. Nationwide bought the first seven assets of the $2 billion total from PMB for $120 million last fall. This year’s closings will bring the total to 22 properties and $580 million; the REIT has agreed to acquire four more 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 largest medical office building transaction ever,” according to Philip Camp, managing director with Shattuck Hammond. “In MOB sales, your average deal is a one-off transaction in the $10 million to $20 million range,” Camp observes, and even the larger transactions are typically in the range of $100 million to $200 million.

The existing properties total about two million sf, with about 90% of the assets on hospital campuses and with an overall occupancy of about 94%. The properties yet to be built total two million sf.

A recent public filing by NHP says that the company “will obtain the right, but not the obligation, to acquire up to $1 billion of MOBs to be developed by PMB over the following seven years.” As part of NHP’s agreement with PMB, which was announced in February, the REIT also acquired a 50% stake in PMB’s property management division, PMB Real Estate Services.

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

Once you are an ALM digital member, you’ll receive:

  • 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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.