IRET sells medical office portfolio

IRET has completed the sale of its medical office building portfolio for $367.7 million.

“The sale of the medical office building portfolio is a major milestone for IRET, representing the final step necessary to transform us into a focused multifamily company,” said Mark Decker, Jr., president and CEO of IRET.

The portfolio consists of 25 properties.

The sale follows the company’s announcement on Nov. 30, 2017, when it entered into a purchase and sale agreement to sell the company’s entire healthcare portfolio, consisting of 28 healthcare properties and one other commercial property occupied by a healthcare tenant.

Prior to closing, the parties agreed to remove one property from the sale, added closing conditions to three properties, and adjusted the purchase price on the remaining properties. Over the next six months, if the additional closing conditions are met, IRET expects to complete the sale of three additional properties for an aggregate sale price of approximately $32.4 million. IRET also expects to sell the one property removed from this portfolio sale in connection with its efforts to opportunistically sell its remaining commercial properties.

Over the past 18 months, IRET has sold several senior housing, commercial, medical office and other noncore properties, and with the completion of this sale, it has sold more than $750 million of noncore assets in this time period. The publicly traded real estate investment trust is focused on the multifamily property sector.