A Toronto-based real estate investment trust has purchased a Palm Beach County rehabilitation center for $25.4 million as part of a $600 million national portfolio deal.
A subsidiary 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 U.S. Highway 1 in Juno Beach, records show.
The 63,209 square foot alcohol and drug treatment center is among 27 health care facilities in 10 Northwestern states purchased from Chicago-based Harrison Street Real Estate, according to a news 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 addiction treatment, medical detoxification and outpatient programs, according to the Beach House website.
A JLL healthcare real estate team marketed the portfolio on behalf of Harrison Street, the statement said. The properties total 1.2 million square feet, are 97% 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 rehabilitation center in Tampa as part of the blockbuster deal.
Healthcare real estate is expected to boom this year with approximately $25 billion in capital expected to be deployed in the sector, according to a CBRE report. Last year, the healthcare sector’s transaction volume was just under $16 billion, the report said.
In South Florida, Miami investor Antonio “Tony” Hernandez recently paid $12.7 million for an office building in western Miami-Dade County with a majority of medical tenants.
In December, ShareMD acquired two medical office buildings in Boynton Beach for $38.1 million, and Miami-based Gomez Development Group secured a $45 million loan to build a medical office building in Aventura.