NexCore Continues National Acquisitions
Continuing its plans to expand into new markets across the United States, NexCore Group recently acquired two additional properties.
“These two properties are part of our national expansion plans,” says NexCore President and Chief Executive Officer Greg Venn. “Our goal is to acquire and develop an additional $600 million of healthcare real estate assets in the next two to three years, and these recent acquisitions help us expand in two different markets.”
Broadway Medical Building is located at 4400 Broadway Street in Kansas City, Mo., directly adjacent to Saint Luke’s Hospital’s main downtown campus. The hospital is a major tenant in the building, leasing space for a Shaped Beam Surgery Center, radiology, laboratory and physical therapy. “This building fits perfectly with our strategy to acquire properties with relationships to strong healthcare systems,” says Hans Wittich, NexCore’s Managing Director of Acquisitions and Development, based in its Baltimore office.
The five-story brick medical office building (MOB) has about 69,900 rentable square feet with an attached four-story, 308-space parking garage. It is more than 90 percent leased with Saint Luke’s Hospital and a neurology/neurosurgery group as the largest tenants, creating alignment with the hospital’s Mid-America Brain and Stroke Institute. Other tenants include a number of OB/GYN and pediatric practices, an eye center, and other medical-related businesses and practices. NexCore plans to make capital improvements, new tenant-responsive common area upgrades and improvements to the building’s parking and landscaping. This property was acquired within a strategic joint venture with Ventas Inc. (NYSE: VTR).
NexCore also recently acquired the SRC Corporate Headquarters Building, located at 221 Dawson Road in Columbia, S.C., an office building that will help to build the company’s real estate portfolio in the Southeast. “This was a very attractive healthcare-related acquisition for NexCore because it fits our target market profile of a strong tenancy in a growing region,” says Bob Gross, CFO, who is heading up NexCore’s acquisitions platform.
The two-story building with a central atrium lobby sits on a 5.8-acre site and was completed in 1999. It is a Class A building with 40,000 rentable square feet and 315 parking stalls. The property is currently 100 percent leased by Strategic Resource Company (SRC), an Aetna Company (NYSE: AET), which specializes in creating and implementing medical and benefits packages and managing administrative services for more than 800 companies across the country.
With the Broadway MOB and SRC buildings, as well as the acquisition of three MOBs from NorthBay Healthcare earlier this year, NexCore has added $50 million of assets to its healthcare real estate portfolio this year. The company also currently has more than $85 million of development under construction, $75 million of acquisitions under contract and $100 million in the pre-development phase for 2008 across the United States.