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Senior Housing Properties Trust and The RMR Group
Opportunity: Sale of 12 Reliant Medical Group Office Properties
Facing a tight deadline, Worcester-based Kelleher & Sadowsky and the Boston office of Jones Lang LaSalle (JLL) were tasked with the assignment to sell 12 medical office properties located throughout Central Massachusetts on behalf of Senior Housing Properties Trust (SNH), a healthcare Real Estate Investment Trust (REIT), and its Newton-based commercial real estate management firm, The RMR Group.
The 12 properties had been occupied by one tenant, Reliant Medical Group. Reliant had recently been acquired by OptumCare, the healthcare delivery arm of publicly-traded UnitedHealth Group. Shortly thereafter, OptumCare decided to recapitalize and sell a portion of its $8.7 billion of total assets. And, Reliant wanted to move into more modern space once its master lease for all properties expired in less than 12 months.
Solution: Targeted, Market-Specific Efforts For Each Property
With the 12 medical office sites spread out across Central Massachusetts, it was highly unlikely that the properties could be sold as one portfolio. It was decided instead to sell each property individually.
One challenge confronting the team was to complete the sales quickly, so as to limit the time the properties sat vacant. In addition, some of the sites required significant cosmetic upgrades that the buyer would be responsible for. Also, the properties ranged in size from 4,400 to 57,000 square feet, in local markets stretching from Milford to Spencer and from Auburn to Fitchburg. This required targeted, market-specific efforts to find a buyer for each property.
Outcome: All 12 Properties Sold Within One Year
Despite these challenges, all properties were sold within a year. Buyers included medical office users, developers, professional office users and community service organizations.
Together, Kelleher & Sadowsky with its local market expertise, The RMR Group with its highly responsive operations and JLL with its national reach teamed up successfully to sell the 12 properties, comprised of 13 buildings totaling 361,580 square feet, for more than $18 million.
Brokers William D. Kelleher IV, James G. Umphrey and Brian A. Johnson of Kelleher & Sadowsky, along with Philip DeSimone and Andrew Sherman of JLL, worked with Gerry Ianetta, Yael Duffy and Diane Bastianelli from RMR to secure the sales.
Timeline
In September of 2018, Kelleher & Sadowsky teamed up with JLL in Boston to market and sell 12 medical office properties occupied by the Reliant Medical Group under a master lease due to expire May 31, 2019. Here’s what happened next:
