CNL Healthcare Properties II to Buy First Medical Office Building

CNL Healthcare Properties II, a publicly registered non-traded real estate investment trust, has signed a definitive agreement to purchase a two-story medical office building in the Kansas City suburb of Overland Park, Kansas for approximately $14 million. This would be the first medical office investment for CNL Healthcare Properties II.

“The Overland Park medical office building is indicative of how we are approaching the early construction of our portfolio, with a strategically located building in a high-end submarket,” said Stephen Mauldin, president and CEO of CNL Healthcare Properties II. “This stabilized asset with durable cash flows will be a strong addition for us, and we are thrilled to be in the position to acquire it.”

The company said that it was selected to purchase the property over several other credible buyers, including public REITs, based on its ability to close and reputation with the broker and in the industry.

The Overland Park medical office building is a 38,500-square-foot, Class A facility. It was built in 2007 on the campus of the 154-bed HCA Midwest Menorah Medical Center.

The facility is 100 percent leased and anchored by an ambulatory surgical center that is operated as a joint venture between HCA and a physicians group. Located at the corner of major thoroughfares, the building maintains close proximity to other medical facilities, retail offerings and the campus of Sprint’s world headquarters.

The planned acquisition is expected to close during the fourth quarter of 2017, but there can be no assurance that the transaction will close.

In other company news, the board of CNL Healthcare Properties II recently approved an estimated net asset value per share of $10.00 for all share classes as of June 30, 2017.

CNL Healthcare Properties II commenced its $1.75 billion initial public offering in March 2016 and raised $16.6 million in investor equity as of the second quarter 2017, according to Summit Investment Research. The company, which intends to invest in senior housing, medical office, acute care and post-acute care properties, acquired its first property in March 2017 for $21.4 million. As of June 30, 2017, CNL-sponsored companies have invested in seniors housing and healthcare real estate investments valued at more than $10 billion collectively.

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