Posted: Sunday, March 09, 2008
Nationwide, Pacific Medical Strike $2B Deal
Nationwide Health Properties (NHP) and San Diego-based Pacific Medical Buildings (PMB) have struck a $2-billion deal in which the Newport Beach-based REIT will acquire $915-million worth of the San Diego-based developer's medical office buildings. It will also own exclusive rights to acquire up to an additional $1 billion of medical office buildings from Pacific Medical over seven years at a discount through a development agreement. The two firms already have the wheels in motion on the existing properties, with Nationwide having acquired seven properties from Pacific for $120 million in Q4'07. Nationalwide will spend the remaining $795 million of the initial $915 million on 16 properties to be acquired this year for $485 million, three in 2009 for $180 million and two in 2010 for $130 million.
Nationwide, which has already lined up $485 million in financing for the 16 properties that will close in 2008, will add two million sf of medical office space to its portfolio through the agreement with Pacific Medical. In addition to the properties it is buying, Nationwide will acquire a 50% interest in Pacific's full-service property management company, called PMB Real Estate Services LLC, as well as an opportunity to participate with PMB in future medical office development.
Article By: Real Estate Southern California, March 2008