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Bentall Kennedy Sells 17-Bldg PHT Medical Office Portfolio

Heitman Acquires 1.4 Million SF Across East Coast, Midwest
February 20, 2018
Princeton Medical Arts Pavillion in Plainsboro, NJ, one of 17 medical office buildings that were acquired by Heitman.

Bentall Kennedy, a Sun Life Investment Management company that has about $37 billion of assets under management, sold its Partners Health Trust (PHT) medical office portfolio to Heitman, a global real estate investment management firm headquartered in Chicago, for an undisclosed price.

This transaction, one of the largest medical office asset sales to have occurred within recent years, totals about 1.4 million square feet in properties located across Texas, Indiana, Illinois, Missouri, New Jersey, North Carolina and Virginia.

Of the 17 properties included with the portfolio, which were built after 2005, the Princeton Medical Arts Pavilion at 5 Plainsboro Rd. in Plainsboro, NJ is the largest at 140,000 square feet and currently is occupied by the Princeton HealthCare System.

“The PHT Portfolio is a high-quality, well-diversified portfolio of premier properties with near-100 percent occupancy and a collective tenancy of highly-rated, market-leading health systems,” noted Brian Pieracci, managing director at Heitman. “The Class-A portfolio exhibits nearly all of the qualities that we look for when acquiring core medical office properties for our portfolio.”

NexCore Group, a Denver-based healthcare developer and manager, advised the buyer in the acquisition and will provide operating and property management services for the portfolio under a long-term contract.

"Healthcare real estate is emerging from the shadows of alternative sectors and is increasingly being viewed as a staple asset," said Jonathan Geanakos, president of JLL Capital Markets, Americas. "Interest in medical office is at an all-time high given the robust capital available for real estate investment, especially from core investors and foreign capital seeking durable income from stable product offering attractive yields.”

JLL’s Capital Markets team represented the seller in the transaction.

The 17 buildings that were acquired by the Chicago investor include:

  • Sugar Land Medical Plaza I - Sugar Land, TX
  • Sugar Land Medical Plaza II - Sugar Land, TX
  • Katy Medical Plaza I - Katy, TX
  • Katy Medical Plaza II - Katy, TX

    San Antonio
  • Westover Hills Medical Plaza I - San Antonio
  • Westover Hills Medical Plaza II - San Antonio
  • Westover Hills Medical Plaza III - San Antonio

    Northern New Jersey
  • Princeton Medical Arts Pavilion - Plainsboro, NJ

    Raleigh/Durham, NC
  • Duke Medicine Plaza - Raleigh, NC

    Richmond, VA
  • Forest Medical Plaza - Richmond, VA

    Columbia, MO
  • Columbia Health Pavilion - Columbia, MO

  • Professional Center II - Indianapolis
  • Mooresville Professional Center - Mooresville, IN
  • The Care Group MOB - Indianapolis
  • Women’s Center - Indianapolis
  • Michigan Road Medical Building - Zionsville, IN

  • Bolingbrook Medical Office Building - Bolingbrook, IL

Please see CoStar COMPS #4141516 for more information on this transaction.

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