{"id":1004712826,"date":"2024-05-07T04:23:11","date_gmt":"2024-05-07T12:23:11","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004712826"},"modified":"2024-05-07T05:33:08","modified_gmt":"2024-05-07T13:33:08","slug":"healthcare-realty-trust-enters-strategic-jv-with-kkr","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/","title":{"rendered":"KKR, Healthcare Realty Trust Launch Strategic JV"},"content":{"rendered":"\n

Healthcare Realty Trust Inc. has entered into a strategic joint venture relationship with KKR to jointly own and invest in medical outpatient buildings.<\/p>\n\n\n

\n
\"Todd
Todd Meredith, President & CEO, Healthcare Realty Trust. Image courtesy of Healthcare Realty Trust<\/em><\/figcaption><\/figure><\/div>\n\n\n

Healthcare Realty expects to receive about $300 million for the contribution of a seed portfolio to the joint venture and will partner with KKR to explore additional acquisitions, including the potential contribution of more Healthcare Realty assets.<\/p>\n\n\n\n

Under the terms of the current agreement, Healthcare Realty will contribute to the joint venture 12 properties valued at $382.5 million, representing a cap rate of about 6.6 percent. For its part, KKR will make an equity contribution to the joint venture equal to 80 percent of the assets\u2019 aggregate value.<\/p>\n\n\n\n

Healthcare Realty will retain a 20 percent interest and will both manage the joint venture and continue to oversee day-to-day operations and leasing of the properties.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Medical Office to Perform Well in 2024: Report<\/a><\/p>\n\n\n\n

\n\n\n\n

KKR has also committed up to $600 million to the joint venture to pursue additional acquisitions or contributions of stabilized assets that are a match for the partnership\u2019s long-term capital base.<\/p>\n\n\n\n

Healthcare Realty, led by President & CEO Todd Meredith, stated that in the near term the firm\u2019s capital allocation priority is to repurchase stock on a leverage neutral basis. In the future, the company may contribute additional Healthcare Realty properties to the joint venture or pursue acquisitions, depending on market conditions.<\/p>\n\n\n\n

The 12 properties to be contributed include medical outpatient buildings in seven markets, located predominantly on or near leading hospital campuses. The assets total 762,399 square feet and are 98 percent occupied.<\/p>\n\n\n\n

Eastdil Secured LLC and BlackBirch Capital were Healthcare Realty\u2019s financial advisors and Latham & Watkins LLP its legal advisor.<\/p>\n\n\n\n

Newmark\u2019s Healthcare Capital Markets Group served as financial advisor, and Simpson Thacher & Barlett LLP served as legal advisor to KKR.<\/p>\n\n\n\n

Outpatient growth<\/h2>\n\n\n\n

The ongoing shift from inpatient to outpatient care is one of five trends driving the health-care industry in 2024, according to a January report from JLL.<\/p>\n\n\n\n

Part of this is the increasing amount of vertical integration in health care. According to JLL, \u201csystems, payors and pharmacies are vertically integrating through mergers to better control costs and receive revenue from the same patients across the spectrum of care. Hospital systems are acquiring outpatient operators or primary care practices, enabling them to benefit from the shift from inpatient to outpatient care.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The REIT will contribute a seed portfolio worth about $383 million, while its partner will commit as much as $600 million in capital. <\/p>\n","protected":false},"author":882,"featured_media":1004590758,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,21754,23891,21742],"tags":[33101,36666,32796,32883,50999,34333],"class_list":["post-1004712826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-medical-office","category-national","category-latest","tag-eastdil-secured","tag-healthcare-realty-trust-inc","tag-jll","tag-kkr","tag-newmark","tag-simpson-thacher-bartlett"],"acf":[],"yoast_head":"\nKKR, Healthcare Realty Trust Launch Strategic JV - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"KKR, Healthcare Realty Trust Launch Strategic JV\" \/>\n<meta property=\"og:description\" content=\"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-07T12:23:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-07T13:33:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"784\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/\",\"name\":\"KKR, Healthcare Realty Trust Launch Strategic JV - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg\",\"datePublished\":\"2024-05-07T12:23:11+00:00\",\"dateModified\":\"2024-05-07T13:33:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg\",\"width\":784,\"height\":600,\"caption\":\"Todd Meredith, President & CEO, Healthcare Realty Trust. Image courtesy of Healthcare Realty Trust\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"KKR, Healthcare Realty Trust Launch Strategic JV\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"KKR, Healthcare Realty Trust Launch Strategic JV - Commercial Property Executive","description":"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/","og_locale":"en_US","og_type":"article","og_title":"KKR, Healthcare Realty Trust Launch Strategic JV","og_description":"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.","og_url":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2024-05-07T12:23:11+00:00","article_modified_time":"2024-05-07T13:33:08+00:00","og_image":[{"width":784,"height":600,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/","url":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/","name":"KKR, Healthcare Realty Trust Launch Strategic JV - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg","datePublished":"2024-05-07T12:23:11+00:00","dateModified":"2024-05-07T13:33:08+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"description":"Healthcare Realty Trust has entered into a strategic joint venture relationship with KKR to own and invest in medical outpatient buildings.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg","width":784,"height":600,"caption":"Todd Meredith, President & CEO, Healthcare Realty Trust. Image courtesy of Healthcare Realty Trust"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/healthcare-realty-trust-enters-strategic-jv-with-kkr\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"KKR, Healthcare Realty Trust Launch Strategic JV"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Todd-Meredith-President-and-CEO-of-Healthcare-Realty-Trust.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004712826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004712826"}],"version-history":[{"count":3,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004712826\/revisions"}],"predecessor-version":[{"id":1004712872,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004712826\/revisions\/1004712872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004590758"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004712826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004712826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004712826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}