Cypress West, TPG Buy Salt Lake City MOB
A joint venture between Cypress West Partners and TPG Angelo Gordon has acquired Renaissance Medical Center, a 112,192-square-foot medical outpatient building in Bountiful, Utah, a Salt Lake City submarket. The duo took out a permanent loan from Capital One, according to CommercialEdge.
Healthcare Realty sold the asset, the same source shows. The company had purchased it in June 2008 from Broadhead & Co. for $30.2 million.
Newmark Healthcare Capital Markets represented Cypress West Partners and arranged the acquisition financing.
The five-story building came online in 2004 and includes almost 3,900 square feet of first-floor retail space. The facility features floorplates averaging 28,179 square feet, two passenger elevators and about 435 parking spaces.
READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025
MountainWest Surgical Center, an ambulatory surgical center owned by HCA Healthcare, anchors the Class A property. The roster also includes eight other medical tenants, with specialties and services including orthopedics, physical therapy, imaging, spine and urology.
Located at 1551 S. Renaissance Towne Drive, the facility is 12 miles from Salt Lake City International Airport, while downtown Salt Lake City is 9 miles away. Additionally, the building is less than 2 miles from Lakeview Hospital.
A $300 million joint venture
The partners purchased the property through their $300 million venture that was announced earlier this year. The companies are focusing on high-growth West Coast and Sunbelt markets, targeting core-plus and value-add returns through leasing, repositioning and redevelopment of medical office assets.
The duo’s first acquisition, which closed in March, involved an 86,000-square-foot medical building in Scottsdale, Ariz. Healthpeak Properties sold the asset.
A few months later, the joint venture purchased Chula Vista Medical Arts II, a nearly 37,000-square-foot medical outpatient building in Chula Vista, Calif. Turner Impact Capital sold the 1985-completed property.
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