Less than a year after selling to a California investor for $59.25 million, the Froedtert North Hills Health Center in Menomonee Falls has been acquired for $74.49 million as part of a $620.4 million portfolio deal.
The two office buildings totaling 121,500 square feet are located at W129 N7055 Northfield Drive, southwest of Appleton Avenue and Good Hope Road.
Affiliates of Irvine, California-based private equity firm IRA Capital LLC sold the buildings to an affiliate of Chicago-based Nuveen Real Estate, according to Waukesha County records.
The North Hills Health Center is assessed at $22.72 million, according to county records.
It was one of the properties acquired as part of a $620.4 million medical office and science portfolio. The firms announced the portfolio deal last week.
According to IRA Capital, the portfolio totals more than 1.17 million square feet, and consists of 29 properties across 13 states. Those states include Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas and, of course, Wisconsin.
The transaction was headed up by Nuveen Real Estate's new U.S. Cities Office Fund, which is part of the firm's Global Resilient Series of open-end, core investment funds.
The health care portion of the portfolio was acquired by the fund alongside Denver-based NexCore Group for $463 million. that portion consists of 27 properties totaling 750,000 square feet. NexCore Group will manage the portfolio nationwide.
The properties include ambulatory surgery centers, micro-hospitals, freestanding emergency departments, and single- and multi-tenant medical office buildings "leased to some of the largest health systems in the country," a news release states.
“This is a foundational investment as we launch the fund and will provide immediate scale in a dynamic and growing sector,” Bill Abramowitz, portfolio manager of the U.S. Cities Office Fund, said in a statement.
Nuveen is a top five global real estate manager, according to the ANREV/INREV/NCREIF Fund Manager Survey 2021. Nuveen has more than 1,890 investments across the globe and 85-plus years of experience in real estate, according to its website.
IRA Capital says it is one of the largest private buyers of health care real estate in the U.S.