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CNL Healthcare Properties Acquires Los Angeles Area Property

Senior housing and healthcare-focused non-traded REIT, CNL Healthcare Properties recently acquired the Lee Hughes Medical Building in Glendale, California.

The REIT acquired the 500-bed, Class A medical office building for approximately $29.9 million.

Built in 2008, the building is composed of 76,758 square-feet and sits on the Glendale Adventist Medical Center campus, which is one of the largest hospitals in the region.

“As a newer, stabilized, on-campus property in one of the nation’s largest metropolitan areas, this property is an attractive fit for our growing portfolio of healthcare facilities,” commented Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “We are excited that this acquisition gives us the opportunity to both strengthen our presence in southern California and grow our existing partnership with Cypress West,” he added.

Cypress West Realty Management Inc., a company focused on the management of healthcare properties in the western U.S., will provide on-site leasing and asset management services. Cypress West also manages three other medical office buildings for CNL Healthcare Properties.

The Lee Hughes Medical Building is connected to the main hospital by a sky bridge and is the only on-campus building not owned by the hospital. It is currently 97% occupied by a number of tenants, one of which is an ambulatory surgery center leased by Adventist Health. The ambulatory surgery facility is one of the newest and largest centers of its kind in the Los Angeles area.

Sponsored by CNL Financial Group, CNL Healthcare Properties was formed in 2010. As of June 2014, the REIT had raised $749 million in equity and owned 74 properties with a total of 3,725 units, according to data from MTS Research Advisors.