The 22,139-square-foot building was constructed in 1950 with a complete renovation in 2010. It is in the Northeast Philadelphia submarket and was fully-leased to multiple tenants including DaVita Dialysis at the time of sale.

Matt Gorman and Michael Shover of Marcus & Millichap represented the seller and the buyer.

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Taunton — Steward Health Care System, the for-profit medical group that owns Taunton’s Morton Hospital and Saint Anne’s Hospital in Fall River, has sold off a portfolio consisting of 13 medical office buildings worth approximately $100 million.

Steward spokesman Chris Murphy confirmed Tuesday that the lease-back agreement with Arizona-based Healthcare Trust of America includes Taunton’s Northwoods Medical Center at 2007 Bay St., as well as a Saint Anne’s-affiliated building.

Murphy last November told the Taunton Daily Gazette the sale-lease-back of Northwoods was intended to raise capital for making improvements in the 10 hospitals the Boston-based business has purchased during the past two years.

“All proceeds from the sale are going to be re-invested into improvements,” he reiterated on Tuesday.

Murphy said the announcement of the sale having gone through at the end of March didn’t generate immediate media attention, because it was only posted as an online press release by Business Wire.

A spokeswoman for Heathcare Trust, when contacted by phone to identify the address of the Fall River building, said the real-estate investment firm doesn’t comment on press releases.

Healthcare Trust was formed in 2006 and, according to its website, has accumulated an acquisition portfolio of $2.5 billion.

Steward Health Care Systems is owned by private equity firm Cerberus Capital Management of Manhattan.

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The $45 million medical office building that Froedtert Health plans to build in New Berlin is the most recent example of the competition among health systems for suburban patients.

That trend is well-established in the Milwaukee area, and it is becoming increasingly common throughout the country, according to a study published this month in Health Affairs, a health policy journal.

Health systems are competing for insured patients through targeted expansions in more affluent communities by building hospitals and clinics and by buying physician practices, according to a long-running tracking study of 12 large metropolitan communities by the Center for Studying Health System Change.

The strategy is a shift in how hospitals and health systems compete, said Emily Carrier, a physician and senior health researcher at the Center for Studying Health System Change.

Competition once focused on profitable services, such as orthopedics and cardiology, and offering cutting-edge technology, such as the CyberKnife Robotic Radiosurgery System.

Beginning around 2007, health systems began to look to nearby and often more affluent communities.

The Milwaukee area is not one of the communities in the tracking study, but the same trend can be seen in this market.

Aurora Health Care spent about $500 million to build hospitals in Summit in Waukesha County and Grafton in Ozaukee County, while Wheaton Franciscan Healthcare spent $89 million to build a hospital in Franklin and $39 million to open an orthopedic hospital in the same building in a partnership with surgeons.

For Froedtert Health, the 135,000-square-foot medical office building in New Berlin will lessen the pressure on its Wauwatosa campus, where clinic visits have increased almost 40% in the last five years.

The site, at S. Moorland and W. Beloit roads, is part of a 48-acre parcel where Children’s Hospital and Health System opened a pediatric outpatient clinic in 2009.

Construction will begin this month and is expected to be completed late next year.

The new building gives Froedtert Health and the Medical College of Wisconsin an additional presence in a suburban market.

William Petasnick, chief executive of Froedtert Health, said the project is part of Froedtert Health’s strategy to expand its network of primary-care clinics.

That’s become increasingly important for academic medical centers such as Froedtert Hospital, he said.

Academic medical centers once could rely on referrals from independent primary-care physicians. But primary-care physicians now typically work for a health system and refer patients to specialists and hospitals within that system.

In recent years, a joint venture of Froedtert Health and the Medical College has been buying primary-care physician practices and hiring physicians.

“This is very march part of that strategy to expand our geographic region,” Petasnick said.

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a. Medical office proved itself to be a more stable assetclass than other property types in the recent downturn.Medical office occupancy stayed at much higherlevels since hospitals, doctors and practice groupshave a high tendency to stay in place. Healthcare isn’trecession proof, but it demonstrated its recessionresistance. Investors looking for stable, predictableincome like the characteristics of healthcare realestate. Plus, a high percentage of occupancy is tiedto highly rated, investment-grade hospitals.

q. What makes medical office occupancy so stable

a. Think about how long the doctors you and your familygo to have been in the same place! Factors that drivecontinuity in healthcare occupancy are the significantinvestment in infrastructure for medical office andclinical space, and the synergies gained from locatingin dedicated medical office buildings and in medicalclusters close to hospitals. Healthcare is local anddemand for services is pretty continuous, no matterwhat community you’re in.

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On January 31, 2012, Griffin-American Healthcare REIT II, Inc. closed on the purchase of the Spokane Integrated Medical Plaza, a 96,000 square foot medical office building and 395-space attached parking structure in Spokane, Washington for $32.5 million. The property is strategically located adjacent to the Deaconess Hospital campus. Community Health Systems and Northwest Orthopedic Specialists lease 97 percent of the building’s net rentable area pursuant to long-term leases.

On December 16, 2011, Duke Realty Corporation closed on the purchase of a 36-bed short stay surgical hospital and a 53,000 square foot medical office building. The portfolio, which sold for $43.47 million, is located in San Antonio, Texas. The hospital is 100% leased by CHRISTUS Santa Rosa Health System, a part of CHRISTUS Health, one of the nation’s largest Catholic healthcare systems. CHRISTUS Santa Rosa also leases more than 70 percent of the fully occupied, multi-tenant medical office building.

P.J. Camp, a principal with Hammond Hanlon Camp LLC, said “We were pleased to work with a very well-regarded development company in Medistar. The properties attracted interest from a wide spectrum of investors as a result of their high-quality construction and strong credit tenancy.”

About Medistar Corporation

Medistar Corporation is a full-service real estate development company that specializes in the design, development, financing and construction of healthcare real estate. The company focuses on medical office buildings, integrated medical plazas and other facilities for the healthcare industry, as well as corporate developments and corporate facilities.

About Griffin-American Healthcare REIT II, Inc.

Griffin-American Healthcare REIT II, Inc. is a real estate investment firm that specializes in the acquisition and management of healthcare real estate. As a leading publicly registered non-traded real estate investment trust, the company seeks to raise up to $3.0 billion in equity and to acquire a diversified portfolio of healthcare-related assets focused primarily on medical office buildings, hospitals, and skilled nursing and assisted living facilities. The REIT currently owns a diverse and growing portfolio of clinical healthcare-related real estate valued in excess of $600 million. The company is based in Newport Beach, CA.

About Duke Realty Corporation

Duke Realty Corporation, a publicly traded real estate investment trust based in Indianapolis, IN, is one of the largest commercial real estate companies in the United States. Founded in 1972, the company owns and operates approximately 143 million rentable square feet of industrial, office and medical office properties in 18 major U.S. cities. Duke Realty’s healthcare division has over 20 years of experience supporting hospitals and physician groups with development, ownership, leasing and management services related to healthcare real estate. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index.

About Hammond Hanlon Camp LLC

Hammond Hanlon Camp LLC (”H2C”) is a healthcare-focused strategic advisory and investment banking firm with a particular emphasis on the not-for-profit sector. The firm traces its heritage back almost 30 years through its predecessor organizations, including Shattuck Hammond Partners. H2C’s principals have served as lead advisors on transactions in the healthcare industry totaling over $30 billion. The company is based in New York and has offices across the country in San Diego, Atlanta and Chicago. h2cllc.com

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Hammond Hanlon Camp LLC

        CONTACT: Brittany Mazin
        Hammond Hanlon Camp LLC
        Bmazin@h2cllc.com
        646-351-0970

Patrick Hurst, Matt Ryan and Michael Hoagberg of Houlihan Lokey represented Wellington Healthcare Services LP in its disposition of the skilled nursing centers. Chris Bodnar of CB Richard Ellis represented PHT Investment Holdings LLC in the sale of the Sierra Providence East Medical Plaza I in El Paso.

Georgia has the largest concentration in the portfolio – six nursing facilities in Gainesville, Snellville, Covington, Conyers and two in Atlanta. Formerly Grubb & Ellis Healthcare REIT II, the California-based buyer’s medical office property is part of the 42-acre campus of the 110-bed Sierra Providence East Medical Center. The three-story medical office building, delivered in 2008, is 90 percent leased to 13 tenants, including the medical campus’ owner, Dallas-based Tenet Healthcare.

The nursing facilities total 454,000 square feet in designs ranging from 20,000 square feet to 77,000 square feet. The 10 buildings, developed between 1969 and 1999, are master leased through 2027 by Wellington affiliates.

The Georgia properties are:

• Bell Minor Facility: 2200 Old Hamilton Place NE, Gainesville. A single-story, 104-bed property totaling 39,000 square feet.

• Buckhead Facility: 2920 Pharr Court South, Atlanta. A five-story, 220-bed property totaling 77,000 square feet.

• New London Facility: 2020 McGee Road, Snellville. A single-story, 144-bed property totaling 45,000 square feet.

• Riverside Facility: 5100 West St., Covington. A single-story, 158-bed property totaling 42,000 square feet.

• Rockdale Facility: 1510 Renaissance Drive, Conyers. A single-story, 102-bed property totaling 48,000 square feet.

• Westminster Facility: 560 St. Charles Ave. NE, Atlanta. A two-story, 84-bed property totaling 20,000 square feet.

In Tennessee, Griffin-American Healthcare REIT acquired an 85-bed, 33,000-square-foot nursing facility at 5081 Easley St., in Millington and a 120-bed, 38,000-square-foot Parkway facility at 200 S. Parkway West in Memphis.

The Alabama purchase was the 120-bed, 46,000-square-foot Sea Breeze facility at 550 Congress St. in Mobile. In Louisiana, the buyer took the deed to a 227-bed, 66,000-square-foot facility at 1736, Irving Place in Shreveport.

The portfolio deal closed with the buyer assuming nine separate U.S. Housing and Urban Development loans totaling $70.5 million and a $12.7 million loan with Capital Funding Group; drawing down $38.4 million from its line of credit with Bank of America; $20 million in borrowings under a line of credit with KeyBank; and net cash proceeds received from its offering. The REIT financed the medical office building with cash proceeds from its offering, which has reaped about $472.85 million since its launch in late December.

Taunton —Steward Health Care System — the Boston-based for-profit medical group that purchased the former Morton Hospital and Medical Center this year — intends to sell and lease back the Taunton hospital’s Northwoods Medical Center building at 2007 Bay Street.

The decision to sell the building — adjacent to a plaza with BJ’s Wholesale Club and other businesses and restaurants — is part of a sale-leaseback strategy involving 11 medical buildings in the state, including two buildings formerly owned by St. Anne’s Hospital in Fall River.

“Technically it’s not a sale,” said Chris Murphy, spokesman for Steward. “It’s not like putting your house up for sale — it doesn’t get listed into a data base.”

What it does do, Murphy said, is produce a lump sum of capital to invest back into the 10 hospitals Steward has bought since the firm was formed in 2010.

In the case of Morton, that entails a commitment to invest at least $110 million over 10 years with more than $25 million coming within the first year.

In addition to technological improvements, Steward has agreed to eliminate $30.5 million of the formerly non-profit hospital’s unfunded liability debt, as well as repayment of $28 million in long-term debt.

“We’ve begun the process,” of approaching investors for a leaseback deal, Murphy said.

He declined, however, to estimate an asking price for the Bay Street property, formerly owned by Morton Property Inc.

The building at 2007 Bay St., according to the city assessor’s online data base, is valued at $5.25 million; the land has an assessed value of $1.07 million.

Murphy said the eventual sale-leaseback “will be invisible to the average patient” and will not create any disruption of patient care and physician services.

“There will be no change in MOBs (medical office buildings),” he added.

Murphy said Steward’s move is part of a national trend by operators of health care facilities looking to raise long-term capital.

He declined to specify the length of any future agreement of a sale-leaseback of Northwoods, other than to say that it will be for “decades.”

Murphy said it’s too soon to speculate if Steward will make it possible to reinstate the former Occupational Health Services, a program at Northwoods previously eliminated by Morton in order to save money.

“We’re now evaluating and prioritizing the hospital,” he said.

Dick Shafer, Taunton’s director of economic development, said sale-leaseback deals are commonplace in the world of mid to large companies.

He said one need look no further than the former Morton Hospital and Medical Center, which previously entered into a sale-leaseback deal with Atlas Investment Group for its Mill River Place medical building.

“It can be a good real estate deal as long as you’ve got the tenants,” Shafer said.

Murphy said with approximately 2,500 doctors in its physicians network, Steward is in a position to sustain and fill any vacancies in buildings that have been sold and leased back.

“We have a very reliable pool of tenants,” he said.

Steward Health Care System is owned by Cerberus Capital Management, a private equity firm.

Murphy said Steward’s purpose is to manage and operate hospitals, invest in infrastructure and recruit doctors. All the more reason, he added, that selling and leasing back secondary properties makes sense.

“We’re not in the real estate business; it’s not our mission,” Murphy said.

CLEVELAND, Ohio — BentleyForbes, a real estate investment firm based in California, is testing the market for single-tenant buildings by putting three Ohio properties up for sale.

The investor has listed the properties, all leased to Medical Mutual of Ohio, for a combined $98 million, according to Marcus & Millichap Real Estate Investment Services. The portfolio, which can be split up, includes Medical Mutual’s downtown Cleveland headquarters — a historic 10-story building on East Ninth Street.

The property, known as the Rose Building, includes 381,000 square feet of office space and has a six-story annex. Medical Mutual has occupied the building since 1947 and owned it until 2000, when the insurer sold its real estate to BentleyForbes in an effort to free up cash.

BentleyForbes also is trying to sell a Medical Mutual administration building in Toledo and a data center in Beachwood. The Toledo property comprises 160,000 square feet on roughly 12.4 acres in an office park. The data center is a two-story, 51,000-square-foot building on 4 acres, at 23700 Commerce Park Road.

Medical Mutual has approximately nine years remaining on 20-year leases at all three buildings, according to Marcus & Millichap, which is marketing the properties.

Kelsey-Seybold announced plans to build a new administrative office building on a 18-acre site in Shadow Creek Ranch, officials from the Pearland Economic Development Corporation confirmed Tuesday (Nov. 1). The health care organization is one of several medical-related facilities recently moving to Pearland

The 170,000 square-foot, four-story office building will be located on the northeast corner of Kirby Drive and Shadow Creek Parkway, just west of State Highway 288. The facility is expected to open in approximately 18 months.

“Kelsey-Seybold choosing Pearland for their new administrative office is an indicator of the growth in office development occurring in our community,” Pearland Mayor Tom Reid said. “Our strategic geographic location, a large talent base, exemplary schools and an all-around high quality of life continues to attract companies looking for opportunities to expand.”

The PEDC and city officials began working with Kelsey-Seybold more than four years ago on the project. Kelsey-Seybold’s office building will be positioned next to the Shadow Creek Business Center, a new Class A 80,000-square-foot office building, and Hospital Corporation of America’s medical office building, a 78,000-square-foot, four-story building on their Shadow Creek Ranch campus.

Also in the vicinity of the new Kelsey-Seybold administrative offices are two new medical manufacturing facilities. Cardiovascular Systems, Inc. began operations in 2010 and Merit Medical Systems, Inc. recently announced its selection of Pearland for its newest R&D and manufacturing facility.

“Recruiting an established company such as Kelsey-Seybold into the community is continued affirmation that Pearland is a great place to do business,” said PEDC Chairman Charles D. Gooden Jr.

Recent U.S. Bureau of Census data confirms that Pearland is one of the fastest growing cities in the United States, ranking 15th in the nation in percentage population growth among cities that had 10,000 people or more in 2010. Pearland’s rapid population increase moved it to third largest from ninth largest city in the Houston MSA, preceded in size only by Houston and Pasadena.

“This project will bring in a significant number of jobs, will support local businesses and boost an already thriving housing market. With ample shovel-ready sites, we anticipate others will follow this trend,” Gooden said.

The facility is being designed by Powers Brown Architecture and will be constructed by E.E. Reed Construction, L.P. TGB Crosswell, formerly CG Commercial Development, developed the property and coordinated the sale with CG-Shadow Creek Ranch Village, L.P., owner of the Shadow Creek Ranch commercial site. TGB Crosswell Managing Partners Allen Crosswell and Tod Greenwood, and Director of Construction Stan Beard, worked on the sale. Tad Armstrong of Thompson & Knight LLP provided legal representation for Kelsey-Seybold on all aspects of this project.

The new administrative offices will support Kelsey-Seybold’s 370 physicians providing primary care and specialty care at 20 clinic locations throughout the region. Currently, there are two Kelsey-Seybold clinic facilities in Pearland, one in Shadow Creek Ranch at the HCA medical office building and one in Silverlake.

had 10,000 people or more in 2010. Pearland’s rapid population increase moved it to third largest from ninth largest city in the Houston MSA, preceded in size only by Houston and Pasadena.

“This project will bring in a significant number of jobs, will support local businesses and boost an already thriving housing market. With ample shovel-ready sites, we anticipate others will follow this trend,” Gooden said.

The facility is being designed by Powers Brown Architecture and will be constructed by E.E. Reed Construction, L.P. TGB Crosswell, formerly CG Commercial Development, developed the property and coordinated the sale with CG-Shadow Creek Ranch Village, L.P., owner of the Shadow Creek Ranch commercial site. TGB Crosswell Managing Partners Allen Crosswell and Tod Greenwood, and Director of Construction Stan Beard, worked on the sale. Thad Armstrong of Thompson & Knight LLP provided legal representation for Kelsey-Seybold on all aspects of this project.

The new administrative offices will support Kelsey-Seybold’s 370 physicians providing primary care and specialty care at 20 clinic locations throughout the region. Currently, there are two Kelsey-Seybold clinic facilities in Pearland, one in Shadow Creek Ranch at the HCA medical office building and one in Silverlake.