Newmark Grubb Knight Frank (NGKF) Global Healthcare Services has negotiated the sale of the Columbus Regional Healthcare System (CRHS) medical portfolio, which comprises 12 medical office buildings located in Columbus, Ga., and one medical office property in Phenix City, Ala.
Physicians Realty Trust (NYSE:DOC), a self-managed healthcare real estate investment trust (REIT), purchased the portfolio as part of a hospital sale-leaseback strategy for $34.5 million at a cap rate of 7.3 percent. PRT has closed on 12 of the 13 buildings, with the final building expected to close shortly. The seller, CRHS, was represented by NGKF Global Healthcare Services Executive Managing Directors Todd Perman, CCIM, and Garth Hogan, and Associate Director John Cobb, in cooperation with local NGKF brokers.
The portfolio totals more than 300,000 square feet and is 88% leased—anchored by CRHS itself, along with the Columbus Clinic and physician and practice groups affiliated with CRHS. Approximately 86% of the total rentable square footage is strategically located on-campus or adjacent to the 413-bed Midtown Medical Center and the 219-bed Midtown Medical Center-West, two of CRHS’s short-term acute care hospitals. The properties are premier locations for medical practices with the medical office buildings located in Columbus, providing convenient access from Veterans Parkway and I-188 and approximately four miles (driving) southeast from the Columbus Airport.
M. Scott Hill, FACHE, president and chief executive officer of CRHS stated, “The NGKF team excelled at understanding our complex needs and locating a buyer that is an expert in this highly specialized area of property ownership, management and development. This is the right move for our health system and we are confident PRT will bring an exceptional level of business expertise to our medical community.”
“NGKF’s Global Healthcare Services team developed a strategy that would provide CRHS’s new leadership team with significant operating capital, allowing the system to reduce its cost of capital and fund new initiatives. Our knowledge of buyer personalities allowed us to take this to market as a private offering, sourcing the right buyer for this portfolio very efficiently and effectively,” said Mr. Perman.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.