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TIAA, Healthcare Realty form medical office JV
Healthcare Realty Trust has entered into a joint venture agreement with Teachers Insurance and Annuity Association (TIAA) to invest in a broad range of medical office buildings.
The joint venture strengthens the company’s efforts to sustain higher investment volume and earnings growth regardless of market volatility by further diversifying its funding sources. The company is the managing member of the partnership and manages day-to-day operations and leasing of the properties in the joint venture. Healthcare Realty owns a 50 percent interest in the joint venture and will fund its pro-rata share of future investments. The joint venture expects to purchase approximately $200 million of properties annually and does not contemplate using property level debt in most instances.
The joint venture purchased its first property for $16.6 million. The 92,139-square-foot building is located on Allina Healthcare’s Mercy campus in Minneapolis. The joint venture will seek to real