January 9, 2018
Chicago-based Harrison Street Real Estate Capital LLC acquired a portfolio of 25 medical office buildings from IRET for $367.7 million. Most of the properties are located in the Minneapolis/St. Paul area, with additional assets in other parts of Minnesota, as well as in Montana, North Dakota, Nebraska, and Wisconsin.
CBRE’s Healthcare Capital Markets Group, led by Chris Bodnar and Lee Asher, partnered with BMO Capital Markets to serve as advisors on the deal. Bodnar says it’s very rare for over one million square feet of medical office properties to be offered in one portfolio, primarily located in one market.
Harrison Street’s Mark Burkemper described the portfolio as a “compelling investment opportunity” that allows the investment firm to “build scale in a premier medical market through a portfolio of high-quality properties.”
IRET announced in November that it planned to dispose of its entire healthcare portfolio, which consists of 29 MOBs, and focus on multifamily assets in the Twin Cities area, Denver, and other strategic markets.
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