One of healthcare’s largest REITs is back with two new portfolio acquisitions. Healthpeak Properties, Inc. (NYSE: PEAK), which was formerly known as HCP, Inc., has been an active buyer and seller in the Long-Term Care sector over the past several years, according to search results in our Healthcare Deal Database, but now the REIT is investing in the medical office building (MOB) and life sciences market. Both of these deals were disclosed in the company’s third-quarter earnings report.
First, Healthpeak purchased Cambridge Discovery Park, a 607,000 square foot Class-A life science campus in the West Cambridge submarket of Boston, for $664 million. The property has stabilized cash and GAAP capitalization rates of 5% and 6.5%, respectively, and is 94% leased to a diverse group of tenants from the biotechnology and pharmaceutical industry. The site includes a future densification opportunity of approximately 100,000 square feet. In connection with the deal, Healthpeak entered into a joint venture on one of the buildings with The Bullfinch Companies, Inc., a manager and developer of life science and medical office real estate.
The second deal is more modest. Healthpeak added a core medical office portfolio consisting of seven Class-A properties, primarily located on hospital campuses in top metro areas in Indiana (5), Illinois (1) and Missouri (1), totaling 439,000 square feet. The buildings are a blend of single and multi-tenancy and feature surgery centers, cancer treatment centers and advanced diagnostic imaging. The properties are located in Indianapolis, Mooresville and Zionsville, Indiana as well as Bolingbrook, Illinois and Columbia, Missouri.
The properties have cash and GAAP capitalization rates of 5.5% and 5.6%, respectively, and are 92% leased with a weighted average lease maturity of 4.1 years and 2.5% average annual rent escalators. Tenants include Ascension Health, Franciscan Health, AMITA Health and the University of Missouri Health. JLL represented the seller and procured the buyer.
