Pisula sells 10 medical properties totaling $142.3M and 292,350 s.f. to Canadian REIT
The assets, located in Arizona and Texas, were part of a 27-property, $601.9M U.S. portfolio joint venture with Harrison Street Real Estate that closed last month
THE WOODLANDS, Texas, May XX, 2022 –The Woodlands, Texas-based Pisula Development Company announced that as part of the recently announced $601.9 million (U.S.)/$764.3 (Canadian), 27-property portfolio sale to a Canadian investment trust, it co-owned 10 of the properties totaling $142.3 million and 292,350 square feet.
The properties, including eight in Arizona and two in Texas, were a joint venture (JV) with Harrison Street, a Chicago-based real estate private equity investment management firm. The entire 27-property portfolio was sold to Toronto-based Northwest Healthcare Properties Real Estate Investment Trust. The transaction closed on April 14.
“While Pisula is primarily known for its development capabilities, this transaction showcases the depth and breadth of our firm’s acquisition knowledge and experience,” says Jim Pisula, Chief Investment Officer of Pisula Development Company. “This was a comprehensive, complex transaction but our acquisition experts handled the challenges with aplomb, resulting in a successful closing.”
Mr. Pisula said the 10 properties his firm sold were a diverse mix of micro-hospitals, medical office buildings (MOBs) and freestanding emergency departments (FEDs). He called the sale of the FEDs the biggest success.
“A few years ago, the capital markets were still trying to understand FEDs and their place in a core portfolio,” explains Mr. Pisula. “But this sale shows that well located FEDs that are affiliated with leading hospitals and health systems are attractive to investors. This proves the value of FEDs in terms of patient care and reliability of cash flows.”
The 27-property U.S. portfolio totals 1.2 million square feet and is located in 10 U.S. states, with a strong focus on the top 20 U.S. metropolitan markets especially the Chicago area and sunbelt states. The facilities, which are 97 percent occupied, include hospitals, micro-hospitals and MOBs.
About Pisula Development Company
Pisula Development Company is the development arm of RRC Medical Real Estate LLC (RRC), a full-service, commercial real estate firm with offices in Texas, Colorado, Pennsylvania, and Arizona. RRC’s headquarters are located in The Woodlands, Texas, a suburb of Houston. RRC provides property, asset and facilities management services for over 2.5 million square feet of commercial real estate. Through its Pinecroft Realty LLC subsidiary, RRC provides leasing and brokerage services. RRC strives to provide these services in a cost-effective manner while creating an alignment of interest among all parties. RRC is also committed to developing energy efficient buildings when possible. As a recognized leader and innovator in the industry, RRC continues to attract and retain a distinguished and growing roster of tenants, lenders and investment partners. For more information, please visit www.PinecroftRealty.com.