The HCP REIT has some recent acquisitions to add to their commercial real estate portfolio. They acquired a life science facility and two medical office buildings for approximately $48 million. The life science facility, a net lease property, is made up 85,000 rentable square feet. This net lease property is occupied by a single tenant under a 15-year triple-net lease. The medical office buildings are a combined 103,000 rentable square feet and are currently 95% occupied.
Recent quarters have revenue climbing at the health-care (HCP) real estate investment trust, the largest by market capitalization, as occupancies improve for their net lease properties.
Most health care REITs invest in various mixes of senior housing, medical office buildings (some with net leases), life science, laboratories and hospital assets. We have seen senior housing facilities which are triple net leased to third-party operators. These product types have varying degrees of upside, with steady cash flow given the nation’s aging Baby Boom population and its need for long-term medical care.
Net leased to a single tenant or otherwise, healthcare net lease properties seem to be one of the preferred asset types for Commercial Real Estate Investors and REITs.