Nuveen Global Cities REIT Expands Healthcare Portfolio with Latest Acquisitions
Nuveen Global Cities REIT Inc., a publicly registered non-traded real estate investment trust, has purchased two healthcare-related properties for approximately $59 million.
Nuveen Global Cities REIT Inc., a publicly registered non-traded real estate investment trust, has purchased two healthcare-related properties for approximately $59 million, the company said in a statement.
The properties include Hillcroft Medical Center, a medical office property in the Houston suburb of Sugar Land, Texas, and 10455 Pacific Center Court in San Diego, a healthcare-related research and development property, which The DI Wire reported on Tuesday was purchased for approximately $46 million.
“The long-term impact on space demand caused by the work-from-home model, which COVID accelerated, is largely unknown,” said Richard Kimble, portfolio manager of the REIT. “While there are positive signals for demand for the office sector, we have increased our allocation to medical office, life science, and R&D because we believe these alternative office uses are much more insulated from work-from-home solutions.”
Both acquisitions bring the REIT’s allocation to healthcare related real estate, which includes medical office, life science, and R&D, to approximately 20 percent of its $830 million portfolio as of May 31, 2021.
Hillcroft Medical Center is a 41,000-square-foot medical office building situated within 1.5 miles of three regional hospitals. The property was built in 2007 and is currently 100 percent leased with a 9.5 year weighted average lease term. Approximately 92.5 percent of the property is leased to Hillcroft Medical Clinic Association, a multispecialty practice offering more than a dozen different specialties.
As previously reported, 10455 Pacific Center Court is a 92,000-square-foot property that is 100 percent leased through August 31, 2028 to Dexcom, a medical device manufacturer that specializes in the commercialization of continuous glucose monitoring systems.
Nuveen Global Cities REIT’s initial $5 billion offering was declared effective by the Securities and Exchange Commission in January 2018, and the company registered a follow-on offering in January 2021. The REIT has raised $323.6 million in investor equity as of mid-June 2021.
