Medical Properties Trust expands South Florida portfolio with $276M buy
Alabama-based REIT bought North Shore Medical Center and Coral Gables vacant lot from trust tied to Tenet Healthcare
Medical Properties Trust is fattening up on South Florida medical properties.
After picking up a hospital site and medical office buildings in Lauderdale Lakes, Medical Properties Trust (MPT) recently bought North Shore Medical Center near North Miami and Coral Gables Hospital in Coral Gables.
The Birmingham, Alabama-based REIT, which focuses on hospitals and medical office buildings, paid a combined $276 million. The sellers are entities managed by executives of Tenet Healthcare, which is part of a consortium that also sold the Lauderdale Lakes properties to MPT.
Records show MPT paid $114 million for the three-story, 245-bed Coral Gables Hospital at 3100 Douglas Road, a three-story parking garage at 2541 Southwest 37th Avenue and a surface parking lot next to the hospital.
The firm paid $162 million for the North Shore Medical Center campus at 9200 Northwest 11th Avenue in unincorporated north Miami-Dade. Previously, MPT closed on the 459-bed Florida Medical Center, three office buildings and a medical office mall near the Florida Turnpike in Lauderdale Lakes. The company paid $171 million to a consortium of real estate partners that included Tenet.
The transactions are part of a leaseback agreement between MPT and Dallas-based Steward Healthcare System, according to a company press release. In June, Tenet sold Steward the hospital operations and associated physician practices at North Shore Medical Center, Coral Gables Hospital, Florida Medical Center in Lauderdale Lakes, and Hialeah Hospital and Palmetto General Hospital in Hialeah.
MPT agreed to buy the underlying real estate and buildings for the five hospitals for approximately $900 million and lease the properties to Steward. So far, MPT has closed on the North Shore, Coral Gables and Lauderdale Lakes sites for a total of $447 million. The company is also going to buy the Hialeah hospitals, according to a company press release.
According to the press release, MPT is using cash on hand, funds from the closing of properties the firm is selling and loan repayments to buy the South Florida medical properties.
MPT agreed to buy the Miami-Dade and Broward medical properties because the hospitals and medical buildings are located in infill locations with strengthening demographics. The facilities also have a history of profitability, the press release states.