Alabama REIT pays $171M for Broward hospital and medical office buildings
Deal includes the 459-bed Florida Medical Center, office buildings and shopping center
An Alabama-based real estate investment trust is gaining a large footprint in Lauderdale Lakes after making one of the largest commercial buys in Broward County this year.
An affiliate tied to Birmingham-based Medical Properties Trust paid $171 million for a 459-bed hospital property, three office buildings and a medical office mall near the Florida Turnpike in Lauderdale Lakes, records show. The sellers are a consortium that includes Scottsdale, Arizona-based Healthcare Trust of America, Dallas, Texas-based Altera Development Company and Tenet Healthcare.
The deal includes the building at 5000 West Oakland Park Boulevard that is home to Florida Medical Center; a trio of three-story office buildings located at 4900 West Oakland Park Boulevard; and the FMC Medical Mall at 4850 West Oakland Park Boulevard, a two-story converted shopping center with 138,103 square feet of medical office space.
In June, Tenet Healthcare sold Florida Medical Center’s operations and four other South Florida hospitals to Dallas, Texas-based Steward Healthcare.
Real estate investors have been bullish on medical office properties in South Florida. ShareMD has been active over the last two years, most recently paying $6.5 million for a Boynton Beach medical office building.
The Lauderdale Lakes hospital and the other properties were built in the 1970s. The consortium’s FMC Land Trust paid a combined $19.5 million for the properties in 1993, records show.
Medical Properties Trust, led by chairman, president and CEO Edward K. Aldag Jr., was established in 2003 and deals exclusively in medical properties and hospital facilities. It also owns assets in the United Kingdom, Germany, Switzerland and Spain. The total value of its assets is $22.3 billion, according to a company press release.
In the second quarter, the REIT acquired four Los Angeles hospitals operated by Pipeline Health System for $215 million and closed on the acquisition of a hospital in Stiling, Scotland for 15.6 million pounds, according to its website. Since the first quarter, Medical Properties Trust sold 12.2 million shares, generating net proceeds of between $253 million to $320 million.