CNL Healthcare Properties Acquires Medical Office Buildings in Florida, California
- Jan 28, 2014
CNL Healthcare Properties has acquired two medical office buildings in Coral Springs, Fla., and two medical office buildings in Chula Vista, Calif., for a total of $60 million.
“We are currently seeing extraordinary demand for well-located, well-leased, on-campus and campus-adjacent assets affiliated with strong health systems, such as the properties we acquired in California and Florida,” CNL’s vice president of acquisitions, told Commercial Property Executive. “At CNL Healthcare Properties, we target the acquisition of properties that are firmly connected to leading health systems in in thriving markets. That makes properties such as these a great fit for our expanding healthcare portfolio.”
The Florida properties consist of two Class A medical office buildings adjacent to the Broward Health Coral Springs Hospital. The buildings are 90 percent occupied and anchored by Digestive Care Physician Group, a regional gastroenterology practice, and a hospital-owned, outpatient ambulatory surgery center. The facilities will continue to be managed by Syndicon Properties, Inc.
“We were particularly attracted to the Class A buildings in Coral Springs, which are among the highest quality medical office buildings in that submarket, because of their successful health system tenants and on-site capabilities, including a profitable surgery center,” Schmid says.
The California properties are the Scripps Medical Building and Bay Medical Building, both located on the campus of Scripps Mercy Hospital. Cypress West Realty Partners, a company that manages healthcare facilities operations across Southern California, Nevada and Arizona, will manage both properties, which are 100 percent occupied.
“The California acquisition allows us to unify this medical campus under a single ownership for the very first time,” Schmid said. “Both buildings are 100 percent occupied with strong tenants and the submarket is one of the fastest growing in the country, which translates to very good current and expected future demand for medical office space.”
CNL Healthcare Properties has now invested more than $300 million in 26 non-senior living healthcare facilities since making its first purchase in January 2013.
According to Schmid, CNL focuses on assets that have demonstrated strong historical occupancy and performance and seek to partner with leading regional and national property management and leasing firms that have proven track records of success.