NexCore Development LLC has agreed to acquire 13 of the 15 buildings within the Dignity Health Office Portfolio in Arizona and California for approximately $114 million.
The transaction is expected to close during the fourth quarter of 2013, subject to normal due diligence and the approval of Dignity Health as lessor on the ground leases. The seller, Jones Lang LaSalle Income Property Trust, Inc., is expected to realize a gain of approximately $14 million on the sale.
CBRE Group Inc.’s (NYSE: CBG) Healthcare Capital Markets Group in Los Angeles was marketing the portfolio on behalf of the unlisted real estate investment trust (REIT), according to hreinsights.com. The website reported in June that eight of the buildings in the transaction are in California (Bakersfield, Northridge, Glendale and Santa Maria) and the remaining five buildings are in Phoenix, Chandler and Gilbert, Arizona.
Citing CBRE marketing materials, the website also reports that the buildings total 657,811 rentable square feet and are 79 percent occupied, with Dignity Health interested in potentially taking more space in the buildings. Most of the assets are in the 30,000 to 49,000 square foot range, with the notable exceptions being the 168,511 square foot McAuley Medical Center on the St. Joseph’s Hospital and Medical Center in Phoenix, and the seven-story, 67,810 square foot Northridge I Medical Office Building in Northridge.
The Northridge I Medical Office Building is connected to the Northridge Hospital Medical Center via skybridges and a tunnel.
Since spinning off from its predecessor company in 2004, NexCore has increased its portfolio of developed, acquired, and managed projects to include over 5.5 million square feet of facilities, with over 1.9 million square feet currently under management. NexCore is headquartered in Denver, with offices in Chicago and Bethesda, Md.