Meadows & Ohly begins 2015 with portfolio sale
NEWS RELEASE
CLIENTS AND FRIENDS OF MEADOWS & OHLY, LLC
MEADOWS & OHLY, LLC SELLS NINE MEDICAL OFFICE BUILDINGS TO CNL HEALTHCARE PROPERTIES FOR APPROXIMATELY $238 MILLION
(Peachtree Corners, GA.) Dec. 23, 2014 — Meadows & Ohly, LLC and affiliated entities have sold a portfolio of nine Class A medical office buildings in the Southeastern United States for approximately $238 million to CNL Healthcare Properties, a real estate investment trust (REIT) focused on senior housing and healthcare facilities. Located across North Carolina and Georgia, the properties combined have approximately 907,291 square feet of rentable space and are collectively 92 percent leased. All of the properties are anchored by leading health systems. The transaction is among the largest medical facilities transactions in the US in 2014.
“The market conditions and specific attributes of these assets provided an opportunity for us to position the portfolio for sale. In selling this portion of our overall portfolio, we are very pleased to have achieved all of the strategic objectives established for these properties,” said Tom Rhodes, Chairman & President of Meadows & Ohly, LLC in announcing the transaction. “We met or exceeded the investment goals of our limited partner investors and we entered into a long term management and leasing agreement with CNL for this portfolio allowing us to maintain our strategic relationships with each of the health systems served. We will continue to use our successful physician ownership and private equity capital model as our core strategy, but now have an additional source of capital for large portfolio acquisitions or developments.”
With these acquisitions, CNL Healthcare Properties has now invested approximately $825 million in medical facilities (MOB, acute care, and post acute care), making the company one of the largest third party owners of such facilities in the United States. “We believe the acquisition of this portfolio of medical office properties both allows us to expand our portfolio with very high-quality on-campus assets and anchor health system tenants in attractive Southeastern markets, but also reaffirms our commitment to be a leader in this sector,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “We are thrilled to establish an important relationship with Meadows & Ohly, an incredibly dynamic and leading developer and manager of healthcare facilities. We believe we share a common dedication to providing facilities that allow for the best possible patient treatment and care.”
Van Fletcher, VP & Principal led the transaction for Meadows & Ohly, LLC which included a national marketing campaign, competitive bids from more than twelve qualified buyers, interviews with finalists and final selection of CNL. “We are pleased to sell this portfolio of buildings to CNL, a firm that shares so many of our core values,” said Van Fletcher. “CNL has a deep capacity to execute complex transactions, understands the healthcare marketplace and will be an excellent long-term partner for the clients we serve together.”
The portfolio includes:
- Midtown Medical Plaza, a 218,489-square-foot medical office building in Charlotte, North Carolina, primarily occupied by Novant Health and physically connected to Novant Health Presbyterian Medical Center in downtown Charlotte;
- Presbyterian Medical Tower, a 146,422-square-foot medical office building in Charlotte, North Carolina, primarily occupied by Novant Health and physically connected to Novant Health Presbyterian Medical Center in downtown Charlotte;
- Metroview Professional Building, an 86,768-square-foot medical office building in Charlotte, North Carolina, primarily occupied by Novant Health and physically connected to Novant Health Presbyterian Medical Center in downtown Charlotte;
- Huntersville Physicians Plaza, a 101,525-square-foot medical office building in Huntersville, North Carolina, primarily occupied by Novant Health and connected to Novant Health Huntersville Medical Center;
- Matthews Medical Office Building, a 96,346-square-foot medical office building in Matthews, North Carolina, primarily occupied by Novant Health and connected to Novant Health Matthews Medical Office Building;
- Haywood Regional Outpatient Care Center, a 44,332-square-foot medical office building in Clyde, North Carolina, occupied entirely by outpatient services groups owned by Haywood Regional Medical Center, a joint venture between LifePoint Hospitals and Duke Medicine, and located adjacent to Haywood Regional Medical Center;
- 330 Physicians Center, a 109,823-square-foot outpatient medical office building in Rome, Georgia, fully leased to Floyd Regional Medical Center and Harbin Clinic, and connected to Floyd Medical Center;
- Spivey Station Physicians Center, a 55,347-square-foot outpatient medical office building in Jonesboro, Georgia, primarily leased to Southern Regional Health System; andSpivey Station Surgery Center, a 47,159-square-foot outpatient medical office building in Jonesboro, Georgia, primarily leased to an ambulatory surgery center owned and operated by Southern Regional Health System.
About Meadows & Ohly, LLC
Founded in 1972, Meadows & Ohly, LLC, a full-service healthcare real estate firm, provides development, advisory, property management, leasing and program management services to hospitals and health systems. With offices in Atlanta and Charlotte, Meadows & Ohly manages a portfolio of 4.3 million square feet of hospital based facilities and has developed more than 60 medical office buildings and outpatient facilities. For more information, visit www.MeadowsandOhly.com.
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on acquiring properties in the senior housing and healthcare sectors, both stabilized and development, as well as other income-producing properties, real-estate related securities and loans. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit CNLHealthcareProperties.com.
About CNL Financial Group
CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $29 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit www.CNL.com.