New York Life Acquires Pembroke Pines Medical Office Complex for $38.3 Million

New York Life Real Estate Investors has made a significant investment by acquiring the Pembroke Pines Medical Plaza for $38.3 million. This transaction showcases the ongoing demand for medical office spaces, even amid broader market challenges.

Details of the Purchase

The Pembroke Pines Medical Plaza, situated at 400, 500, 600, and 700 North Hiatus Road, was purchased from an affiliate of Aventura-based Triarch Capital Group. This strategic location is just one mile away from the 502-bed Memorial West Hospital, making it highly attractive for healthcare-related tenants.

• Sale Price: $38.3 million
• Square Footage: Approximately 92,000 square feet
• Occupancy Rate: 96.8%
• Building Specifications: Comprised of four two-story buildings completed in 2000 and 2001 on a 6.9-acre site.

Notable Tenants

The property hosts several established medical tenants, including:

• Pediatric Associates
• IVF Florida
• Radiology Associates of Hollywood
• First Choice Neurology

Transaction Highlights

The sale price translates to $417 per square foot, an impressive figure reflecting the property’s prime location and steady occupancy. Triarch Capital Group, which acquired the medical plaza for $21.4 million in 2016, has evidently seen substantial appreciation in the property’s value over its ownership period.

Broker Representation

The seller was represented by a team from JLL, including Ike Ojala and Matt DiCesare. Their expertise in real estate transactions aided in facilitating the sale.

Leadership Transition at New York Life Real Estate Investors

Mark Talgo, who has led New York Life Real Estate Investors, is set to retire at the end of June. Thomas O’Hanlon will take the reins as Senior Managing Director, marking a significant leadership transition within the firm.

Previous Investments

New York Life’s previous investment activities in South Florida include:

• ParkLine Palm Beaches: Acquired for $114.8 million in 2020, this 24-story, 290-unit apartment tower is strategically located near Brightline’s station.

Resilience of Medical Office Properties

Unlike much of the broader office market facing slowdowns due to escalating interest rates, South Florida’s medical office segment continues to thrive. The sustained demand is attributed to several factors:

• Immunity to Remote Work Trends: Medical office properties are less affected by the shift to remote work.
• Growing Healthcare Needs: An increasing population and healthcare demands bolster the need for such facilities.

Recent Transactions in the Market

Several other notable transactions in the medical office sector reflect a flourishing investment environment:

• April 2023: An entity managed by Kenneth J. Mantovani III acquired a six-building medical office plaza on Okeechobee Boulevard for $18 million.
• November 2022: AW Property bought Jupiter Medical Park West for $10 million.
• September 2022: Ventas acquired the Kindred Hospital in Riviera Beach for $37 million.

Conclusion

The acquisition of the Pembroke Pines Medical Plaza by New York Life demonstrates the ongoing appeal and resilience of medical office investments in South Florida. With strategic locations, high occupancy rates, and strong tenant profiles, these properties continue attracting significant capital even in uncertain market conditions.

For more on the evolving landscape of medical real estate investments, you can visit The Real Deal for in-depth articles and updates.