Three Orlando-Area MOBs Part of $322M Portfolio Acquired by Duke Realty
In one of the largest medical office building portfolio transactions, Duke Realty paid $332 million for 14 properties in six states. Seller Seavest Healthcare Properties LLC has divested two of its early discretionary funds in the transaction which included assets totaling more than 1.2 million square feet.
The transaction encompassed all of the remaining assets from Seavest Properties I and II. Three properties were included from Fund I—eight other assets from Fund I were sold in May 2011 to Grubb & Ellis Healthcare REIT II Inc.—and the remaining 11 were disposed from Fund II.
“The MOBs that changed hands consist of modern, class A properties affiliated with leading hospitals and health systems in their respective markets,” says Douglas Ray, president and CEO of White Plains, NY-based Seavest. “In aggregate, the institutional-quality assets are approximately 90 percent leased, with hospitals and their affiliates accounting for approximately 63 percent of the occupancy.”
The three Orlando-area properties that traded as part of the 1.2 million-square-foot portfolio were:
- Celebration Health Medical Plaza—a four-story, 93,000-square-foot medical office building In Celebration, Fla. that accommodates physician offices, an ambulatory surgery center and outpatient cancer treatment center; the Medical Plaza is affiliated with Florida Hospital Celebration Health;
- Kissimmee Medical Plaza—a three story, Class A medical office building located on the Florida Hospital – Kissimmee campus in Kissimmee, Fla., affiliated with Florida Hospital Kissimmee. The project is located within minutes of Walt Disney World and accommodates an imaging center, endoscopy center and physician office space.
- East Orlando Medical Surgical Plaza—a 60,000-square-foot, three-story, Class A medical office building, located on the campus of Florida Hospital East Orlando. Florida Hospital is part of Adventist Health System, a large and dominant healthcare provider.
According to a spokesperson for Seavest, the company will continue to acquire medical office buildings and partner with developers to build new properties in its third healthcare real estate fund, Seavest III.
Image: East Orlando Medical Surgical Plaza courtesy of Seavest Healthcare Properties