November 18, 2014
Mike Hargrave

ARC Capital Healthcare Trust II Acquires Pinnacle Health MOB Portfolio

American Realty Healthcare Capital Trust II, which recently purchased a portion of the LaSalle investment Trust MOB II portfolio, has also acquired a $132 million portfolio of medical office buildings from Pinnacle Healthcare of Harrisburg, PA.  The transaction occurred on September 26, 2014 according to an 8K filed with the SEC.  The portfolio is a a mix of off and on campus medical office buildings and one behavioral health hospital.  The behavioral health hospital, the Pinnacle Health Polyclinic Campus, is a 74 bed, 300+ bed hospital that traded for $135/Sq. Ft. and a 7.3% yield.  The “crown jewel” of the portfolio is likely the Fredricksen Outpatient Center Clinical Building in Mechanicsburg, PA.  The 69,000 square foot on campus outpatient center sold for $24.1 million, or $347 per foot and at a 5.8% yield.  That is the lowest actual yield recorded this year in the Revista database so congratulations to Pinnacle Health!  The details of the transaction along with links to the properties in Revista are listed below.

Property Name Sq. Ft. Price Date Annualized Rent Investor Yield PP/SF Rent/SF
Brady MOB, Brady Pa 92,413 $26,400,000 26-Sep $1,700,000 6.40% $286 $18
Landis Memorial MOB – Harrisburg, PA (Behavioral Hospital) 314,790 $42,600,000 26-Sep $3,100,000 7.30% $135 $10
Community Health MOB – Harrisburg 48,212 $7,000,000 26-Sep $500,000 7.10% $145 $10
Fredricksen Outpatient Center Clinical Building — Mechanicsburg, PA 69,437 $24,100,000 26-Sep $1,400,000 5.80% $347 $20
Fredricksen Outpatient Center II — Mechanicsburg, PA 64,259 $20,600,000 26-Sep $1,240,135 6.00% $321 $19
Fredricksen Outpatient Center I — Mechanicsburg, PA 56,057 $11,300,000 26-Sep NA NA $202 $18
Totals 645,168 $132,000,000