REIT Reports $575MM Acquisition

Health Care Property Investors, a real estate investment trust based in Newport Beach, Calif., is acquiring MedCap Properties' interests in 113 office medical office buildings for approximately $575 million.The properties encompass six million square feet and are located in 16 states, with concentrations in Dallas, Denver, Houston, Las Vegas, and Nashville, Tenn., HCPI said. The acquisition has three facets. HCP Medical Office Portfolio, a joint venture between HCPI and GE Commercial Finance, is initially acquiring 100 of the properties for $460 million, the REIT said. HCPI will have a one-third interest (valued at $153 million) in these facilities, which it will manage. The purchase price includes the assumption of a $26 million mortgage at approximately 7%, and the venture plans to add on more mortgage financing. HCPI will also acquire, upon completion, certain construction projects, including five buildings with an expected total cost of $67 million. Eight of the acquired buildings, valued at $49 million, will be contributed to a joint venture between HCPI and senior MedCap management. MedCap's current organization, including 23 employees, will become part of HCPI, the company said. The REIT can be found online at http://www.hcpi.com.