In one of our recent issues, a realtor specializing in medical office buildings described how hospitals were increasingly tapping into the value of their medical office holdings, which can offer a source of capital when virtually all other options have dried up.
Today, we offer you an example of how this is playing out for one specific health system. Milwaukee-based Aurora Health Care has just closed a deal for more than $30 million under which it's selling four of its medical office buildings, or about 185,000 of space, to an investors group affiliated with Grubb & Ellis Healthcare REIT Inc.
Like many of its peers entering such deals, Aurora immediately turned around and leased the buildings, continuing to operate clinics at those locations like it always had.
Now, Aurora will be in a better position to continue its key capital project, the building of two hospitals. That project is expected to cost a total of $373 million, making the cash from the medical office buildings a welcome boost.
To learn more about the transaction:
- read this Milwaukee Journal Sentinel piece
Related Articles:
Medical real estate still healthy
Despite real estate woes, healthcare REITs doing well
Investors choosing medical real estate as safe haven