Behind the Deal: HREA Advises on Kansas Medical Outpatient Portfolio
Article by Levin Associates
HREA | Healthcare Real Estate Advisors announced that it acted as an advisor to the sale of an Overland Park, Kansas medical outpatient building (MOB) portfolio.
The MOB consists of three single-tenant buildings that are 100% leased and occupied by College Park Family Care, a multi-specialty group that is a part of HCA Healthcare. It comprises 66,651 square feet.
The Levin HC team spoke with Christopher Stai, Managing Director of HREA, who was able to provide insight into the transaction. HREA, based in Raleigh, North Carolina, with offices in San Diego, Nashville and Denver, is a leading advisor in the healthcare real estate sector, specializing in providing healthcare providers, investors and developers with acquisition, disposition and capitalization strategies throughout the United States.
The buyers were Kobalt Investment Co. and Blue Drake Capital.
Kobalt Investment Co. provides commercial real estate investment opportunities for institutional partners as well as high-net-worth clients, family offices and individuals. Founded in 2022, Kobalt Investment focuses on acquiring, leasing and managing retail centers and single tenant portfolios. The company offers services in asset management, property management and investor relations.
Blue Drake Capital is a privately held real estate investment and development company headquartered in Dallas, Texas. Blue Drake acquires and develops all asset types with a focus on retail, office and healthcare. Blue Drake’s principals have directly managed more than $700 million in transaction volume across multiple real estate categories.
The seller was College Park Associates LLC, a group of physicians. Stai noted that the physicians “originally developed the MOB to serve their large multi-specialty practice, which has since been acquired by HCA.”
The financial terms were not disclosed. However, Stai said, “The overall valuation reflected a shorter Weighted Average Lease Term (under four years), and the anticipated capital improvements required for the facilities. That said, the strength of the physician group, HCA’s affiliation and the market fundamentals supported a strong valuation.”
HREA began working on this transaction a little over a year ago and was referred by a past client. Overall, the transaction was completed with little challenges or regulatory issues.
“However, the transaction did require certain lease modifications to meet the requirements of the buyer’s equity partner and lender, which was a key part of the closing process,” said Stai.
Representative Transactions
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