Healthpeak Properties acquires $51.3M stake in Bensonhurst medical, part of $21B merger

Healthpeak Properties, a real estate investment trust, acquired an 86.48 percent stake valued at $51.3 million in the medical building (I9) at 6010 Bay Parkway in Bensonhurst, Brooklyn. The seller was Physicians Realty Trust. The transaction is part of a merger deal valued at $21 billion between Healthpeak Properties and Physicians Realty Trust, with the new company known as Healthpeak Properties.
The sale closed on March 1, 2024 and was recorded on April 9, 2024. The property has 144,764 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $354 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
Healthpeak Properties and MedProperties Realty bought the property on September 9, 2022, for $81.5 million, from Marcal Group.
This is an entity level purchase of 86.48% in the asset, not a deed transfer. Healthpeak Properties merged with Physicians Realty Trust in a deal valued at $21 billion.  According to a 2022 press release, Physicians Realty Trust acquired 90% of the property, while joint venture partner MedProperties Realty Advisors owned 10%.  Healthpeak Properties is a REIT which owns continuing care retirement communities, life sciences properties and medical office buildings.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Healthpeak Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Physicians Realty Trust purchased one property in one transaction for a total of $81.5 million and had not sold any properties over the same time period.

The property

The specialty building in Bensonhurst has 144,764 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $23.3 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1 million judgment concerning a lease filed on July 27, 2023, by Geneis Fertility & Reproductive Medicine against MedProperties Realty Advisors and Physicians Realty Trust. In addition, according to city public data, the property has received one DOB violation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 18, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Bensonhurst, The bulk, or 34 percent of the 16.5 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Bensonhurst has 1.3 times the average sales volume among other neighborhoods with $365.1 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Bensonhurst has had very little major development activity relative to other neighborhoods.It had 493,952 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans 144,764 square feet on the block.The identified owner is Physicians Realty Trust.
There are no active new building construction projects on this tax block.

All properties are specialty.

The seller

The PincusCo database currently indicates that Physicians Realty Trust owned at least one commercial property in New York City with 144,764 square feet and a city-determined market value of $23.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single specialty property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that MedProperties Realty Advisors owned at least one commercial property in New York City with 144,764 square feet and a city-determined market value of $23.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single specialty property. It is located in Brooklyn.

Direct link to Acris document. link