CBRE Global Investment Partners (GIP) has acquired a 95% interest in a portfolio of 25 US medical offices.

The sellers, Kayne Anderson Real Estate Advisors and MB Real Estate Healthcare will continue to operate the portfolio and hold a 5% stake.

CBRE GIP, the multi-manager arm of CBRE Global Investors which invests in funds, joint ventures and co-investments, said it is partnering with “a best-in-class owner/operator in the medical-office sector”.

Ian Gleeson, CIO of CBRE GIP, said: “The medical-office sector has seen strong demand due to demographic drivers that have heightened consumer demand for health care.

“Additionally, the medical-office sector features high tenant-retention rates as tenants invest significant capital in their spaces and prefer to remain in the same location that is convenient for their patient base.”

The portfolio is spread across 10 states with concentrations in Atlanta and Chicago. It encompasses 1.4m sqft of existing space and a 150,000sqft of space for development projects. There is a mixture of off-campus and on/near-campus locations.

The portfolio is approximately 95% occupied and tenants include national and regional healthcare systems and specialists.

Peter Westmeyer, founder, president and managing principal of MB Real Estate Healthcare, said: “Together, we have acquired and enhanced more than 10m sqft of medical-office space throughout the last four years.

“This particular portfolio of assets is a perfect opportunity for CBRE Global Investors to expand in the medical-office business.”

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