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Real estate trust buys medical portfolio for $116M

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  • | 2:09 a.m. August 9, 2016
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  • Charlotte–Lee–Collier
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Tampa-based Carter Validus Mission Critical REIT II Inc. has invested $116.5 million to acquire a nine-property portfolio of medical-related buildings in Oklahoma, the company announced Monday.

The acquisition of a portion of the Healthcare Partners Investments LLC portfolio comes as Carter Validus is attempting to broaden its portfolio of healthcare real estate nationwide.

“We seek to add value with the addition of assets,” Carter Validus President Michael Seton says in a statement. He described the purchase as an “ideal acquisition” for the real estate investment trust. Two of the Healthcare Partners' buildings contain 45 acute care hospital beds. The balance of the 328,000-square- foot portfolio is comprised of specialty care, offices, physician practices and related space.

The portfolio is 100% occupied by Healthcare Partners and its physicians, which operate dozens of clinics throughout Oklahoma. Carter Validus expects the acquisition to generate a 7.2% return on leases, which have remaining terms ranging from 10 years to 15 years.

The Healthcare Partners' deal marks the second major portfolio acquisition the non-traded REIT has completed in as many years. Last April, Carter Validus spent $117 million to buy nearly two dozen medical buildings in five states from cancer care provider 21st Century Oncology.

Those buildings, containing 224,150 square feet, included the company's three-story Fort Myers headquarters; a radiation office in Lakewood Ranch; an office in Bradenton; and a trio of other holdings in Lee and Collier counties. In conjunction with the sale, 21st Century Oncology affiliates signed a new, 13-year master lease to occupy the properties.


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