National Medical Office Portfolio is comprised of 10 healthcare properties totaling 661,000 square feet located in the high growth markets of Atlanta, Pittsburgh, Tampa, and Dallas.
National Medical Office Portfolio is an opportunity to acquire a hand-selected, national portfolio of newer vintage, strategically located healthcare assets that are occupied by market-leading healthcare systems.
The portfolio consists of high-quality, newer constructed or renovated assets which are leased with a granular rent roll of 57 tenants.
The portfolio is highly built out with specialized medical equipment with nine out of the ten assets featuring tenants with imaging, surgical and/or oncology build-outs. The heavy investment into the space by tenants indicates high renewal probability. A majority of the portfolio's leased square footage is leased by tenants affiliated with high-quality healthcare systems and market-leading physician groups, driving consumer demand for medical use.
Healthcare-centric real estate will continue to grow in importance during the coming decades. COVID-19 is likely to spark more research into finding vaccines for future pandemics, which will be a key driver of life science demand.
The sector also has long-term tailwinds given the aging baby boomer generation, which is comprised of nearly 73 million people who will start to demand innovative healthcare solutions.
From a medical office perspective, given the high spend on healthcare in the United States relative to other developed nations, we believe more care will be delivered outside of the hospitals in more cost-effective settings such as medical offices. The sector is also not subject to work-from-home risks given the need for in-person interaction and specialized use of the tenants, providing an attractive alternative to traditional office.
The Portfolio was selectively curated through the analysis and diligence of over 450+ assets within the seller’s entire balance sheet, with the 10 subject assets deemed as among the highest quality assets within the portfolio that would generate attractive risk-adjusted returns.
The ten buildings in the portfolio are located in four high-growth, medical office hubs of: Atlanta, Tampa, Pittsburgh, and Dallas.
The strategically located healthcare assets are occupied by market leading health systems and physician groups.
Within 10 miles of each property, the five-year projected population growth averages 9.4% and 27.0% for 65+ years and older, which compares favorably to the U.S. averages of 2.7% and 13.9%, respectively.