REIT Buys Greater Cincinnati MOBs

By Adrian Maties, Associate Editor

HFF Managing Director Michael Bennett

Carter Validus Mission Critical REIT continues to expand its U.S. portfolio of properties. The real estate investment trust has recently acquired five medical office buildings from a Chicago-based firm. Three of the five properties are located in the Cincinnati metropolitan area.

CVMC paid $79.08 million to buy the assets from Oak Street Real Estate Capital. An HFF investment sales team that included managing directors Michael Bennett, Phil Mahler and Evan Kovac represented the seller in the transaction.

The five-property portfolio consists of medical office buildings located in Ohio, Kentucky and Maine. It offers a total of 294,108 square feet of space and, according to HFF, it is currently fully leased to investment-grade, credit-rated health systems offering a full range of medical services.

The largest property in the portfolio is The Christ Hospital AOB in Cincinnati. This 139,428-square-foot building was built in 1960 and renovated in 2013, and currently serves as the home of The Christ Hospital. The other two Greater Cincinnati buildings are the UC Health Lucille MOB, in Cincinnati, and the UC Health Florence, in Florence, Ky. They were both constructed in 2014, both offer 41,600 square feet of space and are both occupied by UC Health. The remaining properties in the portfolio are located in Maine and are leased by MaineGeneral Health.

“All of the hospitals in the portfolio are market leading healthcare providers in their respective service areas,” HFF’s Michael Bennett said in a statement.  “This was a great opportunity for an investor to acquire a well performing, stable medical office portfolio with a strong hospital sponsorship.”

Image courtesy of HFF