A Toronto-based real estate investment trust bought a Palm Beach County rehab center for $25.4 million as part of a $600 million national portfolio deal.
An affiliate of NorthWest Healthcare Properties REIT, led by CEO Paul Dalla Lana, is the new owner of the 107-bed Beach House Center for Recovery at 13211 US Highway 1 in Juno Beach, according to records.
The 63,209-square-foot alcohol and drug treatment center is among 27 health care properties in 10 states NorthWest bought from Chicago-based Harrison Street Real Estate, according to a press release. In 2019, Harrison Street paid $21.5 million for the 5-acre property, records show.
Beach House Center for Recovery consists of four buildings completed in 1985, 1995 and 1999. The facility offers substance abuse treatment, medical detox and outpatient programs, according to Beach House’s website.
A JLL team specializing in health care real estate marketed the portfolio on behalf of Harrison Street, the release states. The properties total 1.2 million square feet, are 97 percent occupied and are located in Florida, Arizona, California, Colorado, Illinois, Indiana, Massachusetts, Minnesota, Oklahoma and Texas. In Florida, in addition to Beach House, NorthWest also acquired a rehab facility in Tampa as part of the blockbuster deal.
Health care real estate is likely to go through a boom this year with about $25 billion of capital expected to be deployed in the sector, according to a CBRE report. Last year, the health care sector’s deal volume was just under $16 billion, the report states.
In South Florida, Miami investor Antonio “Tony” Hernandez recently paid $12.7 million for an office building in west Miami-Dade County with a majority of medical tenants.
In December, ShareMD acquired two Boynton Beach medical office buildings for $38.1 million, and Miami-based Gomez Development Group landed a $45 million loan to build a medical office building in Aventura.