A joint venture between a real estate investment firm and a "prominent" New York City real estate family has bought a portfolio of Eastern Seaboard medical office buildings for $127.5 million.
Brooklyn-based Kalmon Dolgin Affiliates teamed up with the unnamed real estate family to buy the 800,000 sq. ft. portfolio of Class A medical space scattered across 8 East Coast states.
The portfolio was sold by Newport Beach, Calif.-based Health Care Property Investors, a healthcare REIT. The properties are 97% occupied, according to Kalmon Dolgin Affiliates.
"This transaction is unique because the assets, both large and small, had been agglomerated into two separate portfolios. Bidders throughout the U.S. were attracted to certain elements of both portfolios, but neither portfolio had mass appeal on its own," says principal Kalmon Dolgin.
The firm’s new medical office entity—Kadima Medical Properties LLC—will now pursuing future acquisitions. Dolgin believes that the health care sector of the U.S. office market offers growth potential for two reasons: a growing population and the increased longevity of that population.
"Doctors invest heavily in their office infrastructure, and they tend to draw their client and patient base from their immediate surrounding. These two factors combine to make a very low turnover rate in our buildings," adds Dolgin.