Kalmon Dolgin acquires $127M medical portfolio.
The portfolio comprises 800,857 square feet of Class A medical space in Orlando, Tampa and Jacksonville, FL, the Boston region, northern New Jersey, the Bronx, and in four other states. Portfolio trophies include 4545-4555 Emerson St., Jacksonville, FL; and the Harvard Vanguard Medical building at 20-40 Holland St. in the emerging Davis Square section of Somerville, MA, outside Boston.
The seller was Health Care Property Investors, a Newport Beach, CA-based real estate investment trust (REIT). Financing was provided by Wachovia.
KND Management Co., Inc., an affiliate of Kalmon Dolgin Affiliates will also manage the properties, which are 97% occupied.
Kalmon Dolgin said, "This transaction is unique because the assets, both large and small, had been agglomerated into two separate portfolios. Bidders throughout the U.S. were attracted to certain elements of both portfolios, but neither portfolio had mass appeal on its own.
"Some bidders wanted only the smaller properties, and others wanted only the larger properties. So we stepped in and simply bought both portfolios at once. We felt that our size and the fact that we are a family-managed organization gave us a certain amount of flexibility to respond to the special requirements inherent in the two differently-sized portfolios."
Mr. Dolgin said that the firm's new medical office entity, Kadima Medical Properties, LLC, is actively pursuing future acquisitions because the health care segment of the nation's office market offers attractive growth potential due to the expanding size of the population in general and the increased longevity of that population.
He said, "Doctors invest very heavily in their office infrastructure, and they tend to draw their client and patient base from their immediate surroundings. The two factors combine to make a very low turnover rate in our buildings. In general, it's difficult for doctors to move their practices."
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|Title Annotation:||Kalmon Dolgin Affiliates Inc|
|Publication:||Real Estate Weekly|
|Date:||Jun 23, 2004|
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