Picture by Gerd Altmann through pixabay.com
Woodside Well being has recapitalized a 10-property, 423,000-square-foot medical workplace constructing portfolio spanning 4 states in a cope with an affiliate of Heitman that can seed a programmatic three way partnership between the companies. Crain’s Cleveland Enterprise reported the transaction was valued at $140 million.
The settlement between Woodside Well being, a Cleveland-based MOB acquisition and administration firm, and Heitman, a world actual property funding agency, marks Woodside’s first three way partnership with an institutional companion and can allow the corporate to considerably develop its portfolio of health-care actual property.
Newmark’s Healthcare Capital Markets group, in cooperation with native licensees, represented Woodside within the recapitalization and procured Heitman as a three way partnership companion. The group was led by Senior Managing Administrators Jay Miele, John Nero and Michael Greeley and Govt Managing Director Ben Appel. Newmark Associates Adam Goss and Ron Ott offered monetary evaluation on the transaction.
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Miele stated in a ready assertion the partnership with Heitman will help Woodside’s aggressive development goals by augmenting its funding standards to incorporate bigger transactions throughout an expanded geographic footprint.
The seed portfolio includes 10 properties in Texas, Arizona, Georgia and Florida. The property whole roughly 423,000 sq. toes and are occupied by well being techniques, doctor networks and impartial docs. The portfolio has an occupancy fee of 94 % and has 4.3 years of weighted common lease time period remaining and a pair of.8 % contractual annual escalations.
Rising portfolio
Based in 2008, Woodside Well being has been one of the energetic value-add medical workplace consumers within the nation. So far, the corporate has accomplished 47 acquisitions spanning seven states. The agency has acquired, developed and financed practically 250 property at greater than $4.5 billion in gross worth.
Woodside is led by Principals Ted Barr, Joe Greulich, Ben Sheridan and Ben Barr, who’ve a complete of 85 years of expertise within the trade. Ted Barr, a founding principal who leads acquisition efforts for the agency, stated the 2 companies have a shared funding philosophy, cultures and development goals. He stated they have been vital standards for the choice to companion with Heitman in a three way partnership to accumulate portfolios and particular person property as they bolster their presence in key markets and develop into new ones.
Brian Pieracci, managing director of acquisitions – North America at Heitman, stated in ready remarks the seed portfolio’s granular lease roll gives steady present money movement with the power to mark rents to market in an inflationary surroundings. He additionally famous the three way partnership creates the chance to combination a portfolio of property in high-growth markets with sturdy health-care fundamentals.
Woodside offers
The companies didn’t disclose which properties in Woodside’s portfolio seeded the brand new three way partnership with Heitman. Woodside was energetic late final yr with two acquisitions in November. The agency bought Blake Park, a six-building medical and workplace property totaling 55,517 sq. toes in Bradenton, Fla. The property was 80 % leased to 17 tenants, together with 13 medical tenants. It was the primary acquisition for Woodside within the Tampa/Sarasota market and the fourth on the Florida Gulf Coast.
Earlier within the month, Woodside acquired Pearland Central Medical Plaza, a three-building medical {and professional} workplace property totaling 41,700 sq. toes in Pearland, Texas. The property has 13 tenants and is 89 % leased. It was the seventh within the Houston marketplace for Woodside. The agency made one other buy in Texas in September, shopping for Colleyville Sq. within the Dallas-Fort Value MSA. The property in Colleyville, Texas, totals 25,000 sq. toes and is 70 % leased with
seven tenants. It was the third acquisition out there since Woodside returned to the Dallas space final yr.
In June, Woodside acquired Optum Heart, an 81,9070-square-foot medical workplace constructing in Phoenix for $20 million from Talia Jevan Properties Inc. The five-story constructing was 94 % leased with United Healthcare as the primary tenant. Additionally in June, Woodside bought Arrowhead Govt Heart, an eight-building, 98,958-square-foot workplace property in Glendale, Ariz., for $18.2 million. It was Woodside’s fourth acquisition in Glendale within the final 5 years and seventh within the Phoenix space.
