An Irvine, California-based private equity firm that focuses on medical real estate bought an outpatient center in Boca Raton.
IRA Capital paid $16 million for a nearly 3-acre site with a single-story office building at 501 West Glades Road, according to records. The buyer took out a $12 million mortgage with Siemens Financial Service.
The property is fully leased to Boca Raton Outpatient Surgery & Laser Center and Joe DiMaggio Children’s Hospital Specialty Care.
The seller is Kireland West Glades Road Boca Raton LLC, an entity managed by attorney Alex Kurkin. Kireland bought the property for $13.7 million in 2014, records show. The 22,110-square-foot building was completed in 1992.
IRA Capital, co-founded by Amer F. Kasm and Mohannad S. Malas, specializes in buying and trading medical buildings. The firm has acquired over 6 million square feet of property in 30 states, valued in excess of $2.5 billion, according to IRA Capital’s website.
The Boca Raton outpatient center is IRA Capital’s first acquisition in South Florida, but the firm has other real estate holdings across the state.
In Boca Raton, IRA Capital paid roughly $724 a square foot for the property, at a time when medical properties in the tri-county region are in high demand. For comparison, the seller paid $619 a square foot seven years ago.
Last month, Healthcare Trust of America paid $50 million for the 1905 Medical Center in Boca Raton. The deal equated to $312 a square foot.
Also last month, an entity tied to Montecito Medical Real Estate bought a two-story medical office building in Weston for $17.2 million, or $528 a square foot.
Since April, the volume of medical office deals has accelerated nationwide, outpacing the same period last year by 51 percent and narrowing the gap with the pre-pandemic average, according to a September Cushman & Wakefield report. Private buyers and REITs have been more active than institutional buyers, with 50 percent of the deals going to private equity, the report states.
Cushman & Wakefield noted that one of the biggest deals nationally involved IRA Capital’s $620 million sale in August of a 29-building healthcare and life science portfolio across 13 states, including California, Florida and New York.