BRUNSWICK, Ohio, and CHICAGO, Nov. 2, 2022 – Joint venture (JV) partners Remedy Medical Properties and Kayne Anderson Real Estate announced that they have acquired the 34,519-square-foot Atrium of Brunswick in the Cleveland suburb of Brunswick. The $10.75 million transaction closed Aug. 23.
The two-story medical office building (MOB), located at 1299 Industrial Parkway N., is 100 percent occupied by two tenants, including One GI, a gastroenterology group that recently acquired the building’s original tenant and seller Digestive Disease Consultants (DDC).
The MOB also houses MetroHealth, which operates four hospitals and other healthcare facilities throughout the Cleveland area. MetroHealth operates a primary care and pediatrics practice at the MOB, with rotating specialties that include dermatology, rheumatology and sleep medicine.
For Chicago-based Remedy and Boca Raton-based Kayne Anderson Real Estate, the nation’s largest owners of medical properties, the acquisition is a strategic opportunity for their companies.
“This was an attractive off-market opportunity to secure a fully leased medical building with strong tenancy,” says Joe Magliochetti, Chief Investment Officer for Remedy. “Remedy already had existing relationships with DDC and MetroHealth and this transaction will allow us to expand those relationships at the local level. In addition, it will enable us to build a new relationship with the national gastro group One GI, which is one of the fastest growing GI platforms in the country.
“We’re also pleased with One GI’s long-term lease,” Mr. Magliochetti continues. “Shortly after One GI acquired DDC, it signed a new, 12-year lease with 2 percent annual escalations. The other major tenant, MetroHealth, has a lease that expires in 2025, but we are confident they will renew based on their investment in the space and the strategic location of the property in Northern Medina County. The facility is surrounded by a large, growing, 65-plus population, which we expect will result in strong demand for medical services at the MOB.”
Capital One provided financing for the transaction.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in medical office, senior housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14.5 billion of real estate AUM across opportunistic equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $34 billion alternative investment management firm with more than 38 years of successful experience in the real estate, infrastructure, credit, and growth capital sectors (as of 9/30/2022).
Remedy Medical Properties is a full-service healthcare real estate company and the largest private owner of healthcare properties in the country, with over 28 million square feet and 25 offices spanning 43 states. For healthcare decision-makers who want to maximize the value of their real estate while enhancing their ability to adapt, our national presence enables us to offer the right solutions in the right locations for your organization. Remedy offers unmatched flexibility in every client engagement, and our adaptability enables us to provide more options in ownership, development, leasing, management, and strategy.