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Triple Net Healthcare REIT Picks Up Two More Offices

Santa Ana-based Triple Net Properties LLC, a real estate investor known for buying office buildings, has picked up more medical buildings and land.

Triple Net’s NNN Healthcare/Office REIT Inc. bought a building and two land parcels at the Lenox Office Park in Memphis.

The four-story, 99,000-square-foot building houses Pfizer Pharmaceutical Co., a sales, support and accounting unit of New York-based Pfizer Inc.

The medical office and land buy was part of a larger portfolio acquisition by Triple Net, including office and other buildings, according to Daniel Prosky, the company’s managing director of healthcare properties.

“We bid and won the entire portfolio,” he said.

Last week, Triple Net’s parent,Santa Ana-based NNN Realty Advisors Inc.,filed initial plans with the Securities and Exchange Commission to raise up to $423 million in an initial public offering.

The company is yet to set a timetable or other details of the offering, which would be among the larger stock debuts here in recent years.

Triple Net invests in real estate on its own, along with pooling together investors for buys. The company and its affiliates own and manage almost 34 million square feet of space, mainly office buildings, with a market value of $4.6 billion.

The company also recently bought three medical buildings in Arizona on behalf of tenant-in-common investors, Prosky said.

The three buildings in North Scottsdale have about 154,000 square feet of space to rent. They’re 93% full with a mix of healthcare tenants.

Terms of the Arizona and Memphis deals weren’t disclosed.

Kevin Shannon of CB Richard Ellis Group Inc.’s Torrance office represented the sellers.

North Scottsdale, a well-to-do Phoenix suburb, is attractive, according to Prosky.

“It’s in the dead center of Scottsdale. It’s easy to get to,” he said.

The buildings are next to the 343-bed Scottsdale Healthcare Shea hospital campus, which is planning to start a 180-bed expansion.

“Of course, Phoenix, in general, is a high-growth area with a whole lot of retirees moving down there,” Prosky said. “That being said, it’s got a lot of great medical markets.”

NNN Healthcare, which raised about $20 million through a share offering to real estate investors last year, has been busy with other deals.

Earlier this year, NNN Healthcare bought Southpointe Office Park and Epler Parke I in Southport, Ind., and the Crawfordsville Medical Office Park and Athens Surgery Center in Crawfordsville, Ind.

Southpointe is 96% full with a mix of medical and office tenants. Crawfordsville is occupied by the Sisters of St. Francis Health Services of Perpetual Adoration Inc., a Catholic healthcare operator.

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