IRA Capital, a private equity firm with a primary focus on the acquisition and management of real estate assets, announced last week it purchased North Hills Health Center in Menomonee Falls, Wisconsin. The campus of North Hills Health Center houses two Class A buildings totaling 119,000 square feet. They are fully leased to Froedtert Health, a five-hospital system and the primary teaching affiliate of the Medical College of Wisconsin. The deal is valued at $60 million, or $504 per square foot.
Froedtert provides a range of outpatient services at the North Hills facility, including an imaging center, fertility clinic, sleep center, women’s health center, pulmonary rehab facility, occupational medicine clinic and walk-in urgent care. The seller was undisclosed.
According to the HealthCareMandA.com Deal Database, this is the ninth deal IRA Capital has announced this year. The purchase of North Hills Health Center is the largest by announced price so far, but there are some other notable deals. In May, IRA Capital purchased a 64,000 square foot medical office building in Covina, California, for $40 million. Genesis KC Development, a subsidiary of DaVita (NYSE: DVA), was the seller. The building is 100% leased to Magan Medical, a multi-specialty group with more than 20,000 managed care patients. OptumCare, a wholly-owned subsidiary of UnitedHealth (NYSE: UNH), owns Magan Medical.
Overall, IRA Capital has acquired over 450,000 square feet of medical office space throughout the year, a market that has proved to be incredibly resistant to the economic woes of the pandemic.
