In mid-November with little fanfare or formality, Welltower evealed it had become the largest commercial owner of medical office real estate in the country. It achieved this
feat by striking a deal with Hammes Partners to buy a
29-property class-A medical office building portfolio for $787
million. At the same time, the REIT said it was also investing
$885 million across four separate outpatient medical transactions currently under contract.
Over the last few years, Welltower has built out a formidable medical office portfolio. At the start of 2019, it struck
a deal to acquire a 55-asset medical office and outpatient
facilities portfolio from CNL Healthcare Properties for
$1.25 billion—the second largest medical office portfolio
ever sold. All told, as of mid-November, Welltower has
closed or announced more than $3.5 billion of outpatient
medical acquisitions. These acquisitions, many of which
have been off-market, total 450 properties and over eight
million square feet to the company’s platform. Its platform
is now nearing 30 million square feet.
Healthcare Real Estate
These companies are expanding their footprint in
the profitable medical office space while carefully
managing risk in other subsectors.
BY NATALIE DOLCE
RISE TO THE OCCASION