February 14, 2022 10:00 AM
Newmark announces it has completed the $193.5 million sale of the Southern Core Medical Office Portfolio, a 12-property, 400,298-square-foot medical office building portfolio located across seven Sunbelt states. Newmark Executive Managing Director Ben Appel, Senior Managing Directors Jay Miele and Michael Greeley and Managing Director John Nero of Newmark’s Healthcare Capital Markets Group, in cooperation with local licensees, represented the seller, Montecito Medical, and advised the buyer, KKR Real Estate Select Trust Inc. (KREST) on debt financing—a $134.5 million acquisition loan.
“This acquisition provides instant scale across high-growth Sunbelt markets, making it an excellent investment for KREST’s first foray into core healthcare real estate assets,” said Appel. “With Montecito Medical retaining its interest in and operational responsibility for the portfolio, this investment will provide long-term, stable income for its new ownership while aligning with Montecito Medical’s goal of growing its operational platform.”
The portfolio comprises 15 outpatient medical office buildings and ambulatory surgery centers across 12 properties, totaling approximately 400,000 square feet. The properties are located across the southern United States in growth submarkets within Arkansas, Florida, Georgia, North Carolina, Tennessee, Texas and South Carolina. The portfolio is over 99% leased to a mix of leading investment-grade health systems and specialist medical groups in practice areas including gastroenterology, nephrology, orthopedics, ophthalmology and urology.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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