American Academic, Harrison Street Buy PHL MOB Portfolio

By Alex Ciorogar

Hahnemann University Hospital

American Academic Health System LLC and Harrison Street Real Estate Capital LLC have acquired a portfolio of four medical office buildings and a parking garage on the Hahnemann University Hospital campus. Moreover, the companies also purchased parking facilities at St. Christopher’s Hospital for Children.

American Academic Health System LLC—an affiliate of Paladin Healthcare—bought Hahnemann University Hospital, the teaching hospital for the Drexel University College of Medicine and St. Christopher’s Hospital for Children, as well as its affiliated physician practices and other hospital-affiliated entities, from Tenet Healthcare Corporation.

“We plan to do a lot of listening and learning as we continue to frame our vision for how we can best serve our patients, our physicians, our staff and our community. Our intention is to develop deep and enriching bonds in the region through which we will strengthen this historic health-care system and elevate who we are and how we fit into the regional health-care landscape,” said Barry Wolfman, president of American Academic Health System LLC, in a prepared statement.

High-Quality Health-Care Properties

Simultaneously, American Academic and Harrison Street Real Estate Capital LLC have entered into a strategic joint venture under which they have acquired a portfolio of four medical office buildings and a parking garage on the Hahnemann University Hospital campus and the parking facilities at St. Christopher’s Hospital for Children. American Academic has retained ownership of the hospital buildings, as well as one medical office building and two parking facilities.

“This investment highlights Harrison Street’s commitment to supporting and developing high-quality health-care properties that play vital roles in the communities they serve. Understanding the needs of patients, physicians and staff is a top priority and ensures they have access to the care, services and infrastructure needed to improve outcomes,” said Mark Burkemper, director at Harrison Street, in prepared remarks.

In July 2017, Harrison Street Real Estate Capital LLC recently closed Harrison Street Real Estate Partners VI LP. Fund VI, Harrison Street’s sixth U.S. opportunistic real estate fund. The firm far surpassed its $850 million target by reeling in $950 million in equity commitments and raising an additional $205 million in equity capital in co-investment vehicles, for a total of approximately $1.15 billion.

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