HFFS advises on $1.25 billion medical office portfolio

New York, NY  HFF Securities, L.P. (HFFS) and Holliday Fenoglio Fowler, L.P. (HFF) advised CNL Healthcare Properties, Inc. on its $1.25 billion sale to Welltower Inc. of a 55-building Class A medical office portfolio. HFFS was engaged in 2018 to act as a strategic financial advisor in exploring and executing potential liquidity alternatives for CNL Healthcare Properties.

The portfolio comprises 3.3 million s/f across 16 states.  The facilities are affiliated with some of the nation’s premier health systems, including Novant, Memorial Hermann and Cleveland Clinic. 

HFFS advised on the sale of four Inpatient Rehabilitation Facilities (IRFs) for a total of $94 million, also on behalf of CNL Healthcare Properties Inc.  Global Medical REIT Inc. was the buyer.

The HFFS team was led by senior managing directors Steve Hentschel and Ted Flagg and members of HFF’s national medical office capital markets team, Evan Kovac, Ben Appel, Andrew Milne, Zach Drozda and Anthony Frogameni.

“This is the second largest medical office portfolio sale to ever transact based on total dollar volume,” said Milne.  “The high-quality portfolio primarily consists of properties positioned in major markets and on campuses of leading U.S. healthcare systems.”

“The CNL engagement demonstrates the broad strength of HFF’s platform across REIT investment banking and medical office/seniors housing capital markets advisory platforms,” said Flagg.  “We are proud to bring this all together with a great client such as CNL.”