Healthcare: Behringer Harvard Agrees to Buy 618K SF FL Medical Portfolio for $46.6M

Behringer Harvard Opportunity REIT II, Inc., through BH-AW Florida MOB Venture, LLC, has entered into an assignment and assumption of a purchase agreement with Applefield Waxman Capital, Inc., (“AW”) related to the acquisition of a portfolio of medical office buildings in South Florida.

The MOB Portfolio contains an aggregate of approximately 618,000 rentable square feet plus an additional 7.8 acres related to the land. The MOB Portfolio is  77% leased to 215 tenants. The aggregate annualized base rent is $9.6 million. The weighted-average remaining lease term for the tenants is approximately 2.8 years.

The MOB Portfolio consists of the following:

– Hialeah Medical Plaza, located in Hialeah, Florida, was completed in 1982, contains approximately 73,000 rentable square feet and is approximately 76% leased;
– Palmetto Medical Center, located in Hialeah, Florida, was completed in 1980, contains approximately 133,000 rentable square feet and is approximately 82% leased;
– North Shore Medical Arts Building, located in Miami, Florida, was completed in 1980, contains approximately 57,000 rentable square feet and is approximately 87% leased;
– Victor Farris Building, located in West Palm Beach, Florida, was completed in 1988, contains approximately 148,000 rentable square feet and is approximately 83% leased;
– Florida Medical Center – Central, located in Fort Lauderdale, Florida, was completed in 1978, contains approximately 27,000 rentable square feet and is approximately 79% leased;
– Florida Medical Center – East, located in Fort Lauderdale, Florida, was completed in 1974, contains approximately 28,000 rentable square feet and is approximately 58% leased;
– Florida Medical Center – North, located in Fort Lauderdale, Florida, was completed in 1973, contains approximately 27,000 rentable square feet and is approximately 57% leased;
– Florida Medical Center – Mall, located in Fort Lauderdale, Florida, was completed in 1973, contains approximately 125,000 rentable square feet and is approximately 70% leased; and
– Florida Medical Center – Raw Land, located in Fort Lauderdale, Florida adjacent to the Florida Medical Center – Central building, consists of 7.8 acres of undeveloped land.

Behringer Harvard intend to make approximately $5.3 million of renovations and improvements to the MOB Portfolio.

Prior to closing the transaction, the AW Entities withdrew from the MOB JV. The AW Entities may later be readmitted to the MOB JV provided certain readmission conditions are met, including a contribution of a ninth medical office building and payment of a cash capital contribution. If the AW Entities are readmitted to the MOB JV, it is expected they will own an aggregate interest in the MOB JV of approximately 10 percent.

Fee simple title to the land upon which the MOB Portfolio buildings are located was retained by the Seller. The ground lease expires in October 2060 with an option to extend for an additional 25 years upon meeting certain conditions as set forth in the ground lease. The purchase price for the MOB Portfolio, excluding closing costs, was $46.6 million.

[dallasrealestate.citybizlist.com]

Be Sociable, Share!
Leave a Reply