Xceligent: Prominent Milwaukee Buildings Part of 14-Building, 6-State Deal

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Transaction between Duke Realty and Seavest Healthcare Properties estimated to exceed $345MM in value

Xceligent announces that on October 5, 2012, Duke Realty acquired the 162,000 square foot, 6-story Water Tower Medical Commons Building located at 2350 N. Lake Dr. in Milwaukee and the 3-story Seton Professional building located at 13133 N. Port Washington Rd. in Mequon, WI. The new ownership acquired a total of 14 buildings from Seavest Healthcare. The MOB properties span at least six states with the total value of the portfolio estimated to be in excess of $345,000,000.

Information on the Water Tower Medical Commons Building can be found in Xceligent’s CDX database at ID# 1105519. Building occupancy was at approximately 78% at the time of the sale, with anchor tenant Columbia St. Mary's Cancer Center occupying 28,377 rentable square feet on the ground floor; Medical Oncology in 14,700 square feet on the first floor; and Madison Medical Affiliates occupying 13,000 square feet on the third floor. Xceligent's CDX database reveals 33,403 square feet available for lease at $18 per square foot triple-net at the time of Duke's acquisition. The building sold for $40,877,000. Bob Floyd, the leasing agent for the Water Tower Medical Commons facility and a commercial real estate agent with NAI MLG Commercial, described the transaction as “a direct deal.”

Information on the Seton Professional Building can be found in Xceligent’s CDX database at ID# 1105584. With 72,822 square feet gross rentable space, it comprises the second local building involved in the multi-state portfolio deal. Also closing on October 5, 2012, Duke Realty reportedly paid $11,038,000 (as verified by Wisconsin IPAS records) for the building. According to Xceligent's Tenant ProspeX, Columbia St. Mary’s Madison Medical Affiliates occupies nearly 16,700 square feet on the ground floor and Meadowview Ob/Gyn leases 6,381 square feet on the first floor.

“Well located and high-quality medical facilities have been in high demand by Institutional and Real Estate Investment Trusts (REITs) throughout the United States (including in Wisconsin),” noted John Winslow, CRE and Xceligent Senior Sales Comp Manager, who has tracked commercial real estate transactions in various locations in the United States for nearly 40 years. “For example, this past July, American Realty Health Care REIT acquired a 106,000 square foot medical facility in Hartford, WI for $24,281,300; a 38,350 square foot medical facility in Neenah, WI for $9,975,000; and an 81,696 square foot medical building in Two Rivers, WI for $28,743,000. These were all under Aurora Heath Care as the anchor tenant. While they spent $62,999,300 in Wisconsin, they just scratched the surface as they have been aggressively acquiring medical facilities all over the United States in 2012.”

Seavest Healthcare Property’s Senior Asset Manager Lloyd Mallah had no comment on the portfolio price of the 14 properties but, as previously noted, it is believed that the portfolio price is in excess of $345,000,000. Mr. Mallah indicated, “We will be releasing a press release in a few days” regarding the details of the portfolio transaction. It is believed these properties are concentrated in Wisconsin, Florida, New Mexico, Louisiana, Michigan and Texas.

Information such as this recording is available to Xceligent subscribers. The company provides information services in nearly 40 markets across the United States and will be increasing this to the largest 65 markets in the country over the next 32 months. Leveraging an efficient, proactively research-focused model, Xceligent provides accurate, timely information and marketing tools to commercial real estate professionals. Visit http://news.xceligent.com for more information.

About Seavest Healthcare Properties
Seavest Healthcare Properties, LLC ("SHP") is a leading investor in medical office buildings and outpatient facilities located throughout the United States. Seavest works with best-in-class medical office developers to develop new properties and acquires existing properties directly or with operating partners. Seavest invests through dedicated discretionary third-party real estate funds focused on the healthcare sector.

About Duke Realty LP
Duke Realty is one of the largest commercial real estate companies in the United States with approximately 139 million square feet of industrial, office and medical office properties in 18 major US cities, nationwide construction capabilities, strategic land positions throughout the US, and more than 850 associates providing leasing, property management, site selection, development, financing and construction services.

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