Harrison Street has sold a portfolio of 27 healthcare properties in the United States to Canada-based REIT NorthWest Healthcare Properties for US$600 million.
The portfolio totaling 1.2 million square feet has a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital.
The portfolio includes nine properties in Arizona; five properties in Texas and Illinois; two properties in Florida and one property each in Minnesota, Massachusetts, California, Oklahoma, Colorado and Indiana.
JLL marketed the portfolio on behalf of Harrison Street.
“Harrison Street is proud to have partnered once again with JLL’s Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states,” said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. “The successful sale of these diversified healthcare assets reinforces the strength of Harrison Street’s ongoing partnership with JLL, and the portfolio execution ability of our talented team who have worked diligently to execute on behalf of our investors.”
The portfolio is 97% occupied by key healthcare providers, including Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare.
The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach and Managing Directors Tim Joyce and Brannan Knott, with support from Vice Presidents Trent Jemmett and CJ Kodani. Local support was provided by JLL licensed brokers in each location.
“The offering was well received due to its scale and the mix of medical office and acute care facilities,” Berman said. “Healthcare assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords.”