CNL Healthcare Properties Acquires Four Medical Office Buildings in Tennessee
$57.3 million acquisition expands and strengthens the company’s healthcare portfolio
(ORLANDO, Fla.) July 17, 2013 — CNL Healthcare Properties, an investment offering focused on senior housing and healthcare real estate, has acquired four medical office buildings in or near Knoxville, Tenn., from affiliates of N.T. Brinkman, Inc. for approximately $57.3 million (the Knoxville Medical Office Properties). The four Knoxville Medical Office Properties are part of the Tennova Healthcare System, which is a subsidiary of Health Management Associates (HMA), the third largest for-profit health system in the United States by total market capitalization.
The Knoxville Medical Office Properties total more than 200,000 square feet of modern, Class A, medical office space and include the Physicians Plaza A at North Knoxville Medical Center, Physicians Plaza B at North Knoxville Medical Center, Jefferson Medical Commons, and Physicians Regional Medical Center – Central Wing Annex.
The Knoxville Medical Office Properties are located on three hospital campuses operated by HMA’s Tennova Division. HMA owns 70 hospital campuses and several hundred acute care facilities nationwide. Tennova is a market leader in healthcare services in eastern Tennessee, and the North Knoxville and Jefferson City campuses included in the portfolio are two of the fastest growing within the HMA portfolio.
The properties will continue to be managed by an affiliate of N.T. Brinkman, Inc., which was established in 1981 and focuses on the development, funding and operation of healthcare properties throughout the Southeast.
“The acquisition of the Knoxville Medical Office Properties allows us to expand our medical office portfolio in a well-established healthcare market,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “We are delighted that N.T. Brinkman will continue to manage these properties and look forward to growing our partnership with one of the leading companies in this sector.”
Located in Powell, Tenn., the Physicians Plaza A at North Knoxville Medical Center was built in 2005 and is approximately 67,410 square feet. The building houses a combination of hospital-owned and independent physician tenants, the majority of which have signed long-term lease extensions for the next five to 10 years. Physicians Center Plaza B at North Knoxville Medical Center was constructed in 2008. The North Knoxville Medical Centers are part of a larger, mixed-use campus featuring hotels, retail and additional outpatient medical buildings. The campus is located approximately 10 miles north of downtown Knoxville and is adjacent to Interstate 75.
Built in 2001, Jefferson Medical Commons in Jefferson City, Tenn., is a three-story building with direct connections on each floor to the adjacent acute care hospital. The building contains 15 individual physician office suites. It is located next to U.S. Route 11, a major east/west thoroughfare across eastern Tennessee and the Southeast.
Physicians Regional Medical Center – Central Wing Annex in Knoxville, Tenn., is a two-story medical office building that was constructed in 2004 and sits above existing hospital acute care space. The building houses the offices of the hospital-owned cardiology practice.
“We are excited to build a relationship with CNL Healthcare Properties through our continued management of the properties. CNL Healthcare Properties is known for its commitment to its investments and we look forward to partnering with them,” said Norm Brinkman, president of N.T. Brinkman, Inc. “We are committed to managing quality properties and providing excellent service for tenants and patients, and we look forward to continuing this work with CNL Healthcare Properties.”
The Knoxville Medical Office Properties marks the third medical office building portfolio acquisition for CNL Healthcare Properties; in January, the company purchased a medical office building in southern California, and it recently purchased a cancer care center in Indiana.
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is an investment offering 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. Beginning with the year ended December 31, 2012, the company intends to be taxed as a real estate investment trust. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit www.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 $26 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit www.cnl.com.
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