Blackstone Sells Value-Add Medical Campus in Providence
- Mar 16, 2017
Providence, R.I.—Ventas Inc. has purchased a life science, research and medical campus in Providence, R.I., from affiliates of Blackstone Real Estate Partners VIII LP, the Chicago-based REIT announced Tuesday.
The acquisition’s nearly $130 million price tag covered South Street Landing, a redeveloped 269,000-square-foot former municipal power station, as well as an adjacent newly constructed 744-car parking garage. The building is 100 percent leased to Brown University for academic administrative offices and the Nursing Education Center, an initiative between Rhode Island College and University of Rhode Island’s nursing programs.
The redevelopment, on the waterfront of the Providence River at South Street, reportedly is nearly complete and expected to be fully occupied by late 2017. The property will host advanced medical teaching labs and simulation facilities, among other uses. The building, also formerly known as the Dynamo House, had been vacant since 1999. The site is in the city’s Jewelry District, across the Providence River from Brown’s main campus.
The acquisition also includes adjacent sites targeted for development and redevelopment to support the demand from universities and research companies at the campus for life science, medical and innovation purposes. The purchase price for these additional sites was $21 million.
Ventas funded the transaction using cash on hand and other capital sources. The company did not respond to Commercial Property Executive’s request for additional information.
Wexford Science & Technology LLC intends to separately develop River House, a 174-unit student residence on the campus for graduate, medical and upper-level nursing students.
Brown University indicated that its space in South Street Landing will be occupied by more than 500 administrators who currently work from offices located in the Jewelry District and in College Hill, near the main campus.