CNL Healthcare Properties II Completes Second Acquisition

CNL Healthcare Properties II, a publicly registered non-traded real estate investment trust focused on seniors housing and healthcare properties, has purchased an on-campus medical office building in Overland Park, Kansas for approximately $14 million. This is the first medical office investment for CNL Healthcare Properties II and the REIT’s second acquisition.

“The Overland Park building is an ideal second acquisition for CNL Healthcare Properties II and representative of the type and quality of properties we plan to build the company around,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties II. “This is a stabilized asset with strong cash flows in a strategic location, and we are pleased to add it to our growing portfolio.”

Built in 2007, the medical office building is a two-story, 38,500-square-foot, Class A facility in Overland Park, an affluent suburb of Kansas City. It is located on the campus of the 154-bed HCA Midwest Menorah Medical Center.

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

CNL Healthcare Properties II 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 in the industry as a reliable capital partner.”

CNL Healthcare Properties II commenced its $1.75 billion initial public offering in March 2016 and raised $19.7 million in investor equity as of the third quarter 2017. 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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