Stake In $154M Launches Cancer Center
DALLAS-Savills arranges joint venture capitalization between Northwestern Mutual and Duke Realty for Baylor University's 460,000-square-foot cancer center.
By Amy Wolff Sorter | May 14, 2009 at 07:52 PM
DALLAS-Savills' Health Care Real Estate Practice represented Duke Realty Corp. in arranging a joint venture capitalization valued at $154 million. Duke is joining forces with Northwestern Mutual to build a 460,000-square-foot cancer center at Baylor University Medical Center.
A press release generated by New York City-based Savills says the two main tenants will be Baylor University Medical Center and US Oncology. An update is to follow, however construction is scheduled to begin during Q2 2009 with completion anticipated by 2011. Duke Realty plans to seek LEEDs Silver Certification for the project.
"This transaction — which involved a capital source with little previous exposure to this asset class – is evidence that the capital markets are favoring the medical office sector, with its positive demand factors and certainty of cash flow, even in a recessionary environment," said Savills executive managing director Jeffrey J. Cooper in the release. "Yet while access to capital remains viable for this type of investment, arranging capitalization on this scale during this market cycle is complex, and requires both creativity and the highest-quality real estate."
Cooper, who leads Savills' Healthcare Real Estate Practice, added that the transaction represents one of the largest private-equity placement for medical real estate.
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