HFF Securities, L.P. (HFFS) and Holliday Fenoglio Fowler, L.P. (HFF) announced today that they have advised CNL Healthcare Properties, Inc. on its $1.25 billion sale to Welltower Inc. of a Class A medical office portfolio totaling 55 buildings across 16 states. HFFS was engaged in 2018 to act as a strategic financial advisor in exploring and executing potential liquidity alternatives for CNL Healthcare Properties.
The medical office portfolio comprises approximately 3.3 million square feet across 16 states, positioned in strategic locations within major metropolitan markets. The facilities are affiliated with some of the nation’s premier health systems, including Novant, Memorial Hermann and Cleveland Clinic.
In April, 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 representing CNL was led by senior managing directors Steve Hentschel and Ted Flagg as well as members of HFF’s national medical office capital markets team, including managing directors Evan Kovac and Ben Appel and directors 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,” added Flagg. “We are proud to bring this all together with a great client such as CNL.”
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on investing in institutional quality properties in the seniors housing and healthcare sectors, including stabilized, value-add and ground-up development assets, as well as other income-producing properties, real-estate related securities and loans. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit cnlhealthcareproperties.com.
About CNL Financial Group
CNL Financial Group (CNL) is a private investment management firm providing real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $34 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit cnl.com.
Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at welltower.com. Welltower routinely posts important information on its website at welltower.com in the "Investors" section, including corporate and investor presentations and financial information. The firm intends to use its website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on its website under the heading "Investors." Accordingly, investors should monitor such portion of the company's website in addition to following company press releases, public conference calls and filings with the Securities and Exchange Commission. The information on Welltower’s website is not incorporated by reference in this press release, and the web address is included as an inactive textual reference only.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.
HFFS Senior Managing Director