Remedy acquired this 3.2 million square foot portfolio from a joint-venture partnership between a publicly traded healthcare REIT and a pension fund. The portfolio contains highly desirable assets in 17 states and 27 MSAs, including Birmingham, Chicago, Dallas, Oklahoma City, Orlando, Pensacola, Phoenix, and Washington, D.C. Property types include multi-tenant medical office buildings, ambulatory care centers, surgery centers, women’s centers, a hospital with birthing center, and a long-term acute care hospital. Over 53% of the portfolio is located on campuses of major hospital systems, with Ascension and USPI being two of the largest tenants.
Remedy purchased 100% of the membership interests in the existing entities rather than the more typical property interest. This required additional due diligence that Remedy was willing to undertake to provide the most flexibility to the seller. Remedy has increased the value of the portfolio through lease renewals, re-tenanting initiatives, and operating expense reductions. In particular, Remedy was able to reduce overhead by running the portfolio more efficiently. By combining these properties with its existing portfolio, Remedy was able to leverage volume discounts from vendors.
Transaction Date: December 2015