CNL Healthcare Properties Acquires Michigan Medical Office Building
REIT invests $30.5 million in key property in Detroit suburb
(ORLANDO, Fla.) Feb. 26, 2015 — CNL Healthcare Properties, a real estate investment trust (REIT) focused on senior housing and healthcare facilities, has acquired Novi Orthopaedic Center, a Class A, multitenant medical office building in Novi, Michigan, a high-end suburb of Detroit, for approximately $30.5 million. The building has 64,925 rentable square feet and is currently 100 percent occupied, anchored by a 26,000-square-foot, best-in-class regional ambulatory surgical center majority owned by Providence/St. John’s Health System.
Holladay Properties, which manages more than 500 buildings in more than 25 states, will manage and lease Novi Orthopaedic Center on behalf of CNL Healthcare Properties. Holladay Properties also provides management and leasing services for 15 other assets owned by the REIT and provides reporting and accounting services for two more; the 17 properties have a combined 727,453 square feet of rentable space.
Opened in 2007, Novi Orthopaedic Center is located on the campus of Providence Park Novi Hospital, a 200-bed facility that was ranked by Consumer Reports as one of Michigan’s top three hospitals for surgical outcomes in 2013. Tenants include: practices owned by Providence/St. John’s Health System, a nonprofit that owns and operates eight hospitals and more than 125 medical facilities, including Providence Park Novi Hospital, a subsidiary of Ascension Health; multiple surgical practices and pain management clinic. More than 50 percent of the leases in Novi Orthopaedic Center are the obligations of Providence Park Novi Hospital.
“The addition of this asset to our portfolio continues our investment strategy of acquiring newer health-system anchored medical facilities in attractive submarkets,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “We also are pleased to extend our relationship with Holladay Properties through its management of this asset. Holladay has proven to be a valued partner at the other CNL Healthcare Properties facilities it manages and we are confident it will bring the same level of expertise and performance to Novi Orthopaedic Center.”
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on acquiring properties in the senior housing and healthcare sectors, both stabilized and development, as well as other income-producing properties, real-estate related securities and loans. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit cnlhealthcareproperties.com.
About CNL Financial Group
CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $29 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit cnl.com.
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