Highwoods Properties Sells $79M Raleigh MOB Portfolio
JLL Capital Markets arranged the transaction, which involves multiple buyers.
Highwoods Properties has sold an eight-building medical office portfolio in Raleigh, N.C.—encompassing a total of 338,000 square feet—for $79.4 million.
Two separate buyers purchased the assets. Evergreen Medical Properties acquired seven of the buildings, all part of the Rexwoods Office Center campus in West Raleigh. Northwood Ravin purchased a 97,000-square-foot building adjacent to the Research Triangle Park, according to Wake County records, and now intends to redevelop the property.
According to the same source, Evergreen received $23.9 million in financing from Webster Bank and a $22.5 million loan from Equitrust Life Insurance Co. to finance the acquisition of the Rexwoods campus. Meanwhile, Highwoods Properties provided $6.2 million in non-recourse first mortgage seller financing to Northwood for the RTP building. The note is set to mature next year in February.
JLL Capital Markets worked on behalf of the seller, procured the buyers and arranged acquisition financing for part of the portfolio.
Near a health-care cluster
Located at the corner of Blue Ridge and Lake Boone Trail, the Rexwoods campus is across from UNC-REX Hospital and has access to interstates 40 and 440. Downtown Raleigh is less than 7 miles away. Other medical service providers in the surrounding area include WakeMed Raleigh Campus and Duke Raleigh Hospital.
Highwoods Properties developed and purchased the buildings between 1982 and 1998. Three of them were recently renovated. The tenant roster includes Raleigh Eye and Face Plastic Surgery, HRC Behavioral Health & Psychiatry, Raleigh Spine and Pain Center, LifeStance Health and SME Clinic of Raleigh, among others. The Rexwoods campus was 84 percent occupied at the time of the sale.
JLL Senior Managing Directors Mindy Berman and Ryan Clutter, Senior Director Daniel Flynn, Director Teddy Hobbs and Associates Woody Flythe and Landon Weaver were all part of the team involved in the sale. Senior Director Anthony Sardo and Director Ward Smith arranged the debt financing.
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