Peachtree Corners, GA – Meadows & Ohly, LLC and affiliated entities have entered into a definitive agreement to sell a portfolio of core hospital based medical office buildings in the metropolitan Atlanta market for approximately $612.5 Million to Healthcare Realty (HR), a publicly-traded real estate investment trust (REIT) focused on owning, managing, acquiring and developing outpatient medical facilities throughout the United States. Located on hospital campuses across the metro Atlanta market, the medical office buildings combined have approximately 1.3 million square feet of rentable space and are 96% leased. This portfolio is among the largest and highest quality medical office transactions in the US in 2017.
“The market conditions and unique quality of these medical office building assets provided an opportunity for us to position the portfolio for sale. In selling these assets which we developed or acquired over the past 15 years, we are pleased to have achieved the strategic objectives established for these properties”, said Tom Rhodes, CEO of Meadows & Ohly, LLC in announcing the transaction.
Upon closing of the transaction this fall, Meadows & Ohly will enter into a long term management and leasing contract with HR allowing the firm to maintain its strategic relationships with each of the health systems served. Meadows & Ohly will also expand its services platform by assuming property management responsibilities for approximately 1 million square feet of medical office properties within the existing HR portfolio. As part of the expansion, Meadows & Ohly will open an office in Richmond, Virginia.
“We have found a shared vision for healthcare real estate ownership and commitment to serving patients, physicians and hospitals with HR. We look forward to partnering with them to enhance the value of their existing assets while pursuing opportunities together in the markets we serve. HR will add a creative and competitive source of capital for acquisitions and developments which will expand the capital solutions we offer to hospitals and physicians.”
About Meadows & Ohly, LLC
Founded in 1972, Meadows & Ohly, LLC, a full service healthcare real estate firm provides development, property management, lease administration, brokerage, program management and advisory services to hospitals, health systems and physician practices. With offices in Atlanta, Charlotte and Jacksonville, Meadows & Ohly provides real estate services for a portfolio of 6.6 million square feet of hospital based medical office and outpatient properties. The firm has developed more than 70 medical office buildings valued in excess of $1 billion. For more information, visit meadowsandohly.com.
About Healthcare Realty
Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2017, the Company had gross investments of approximately $3.6 billion in 197 real estate properties in 26 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.9 million square feet.