Diversified Healthcare Trust Expands its Portfolio of Life Science Properties In the San Francisco Bay Area Market with $82 Million Acquisition
July 28, 2022 at 08:00 AM EDT
Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has acquired 47071 Bayside Parkway located in Fremont, CA for $82 million, excluding closing costs, reflecting a current GAAP cap rate of 6.5% at closing. The recently renovated asset includes 89,000 rentable square feet of lab and corporate headquarters space that is 100% leased to Alamar Bioscience through January 2034. The property is located along the Central I-880 corridor, an established and growing life science submarket of the San Francisco Bay area.
Jennifer Francis, President and Chief Executive Officer of DHC, made the following statement:
“We are excited to be growing our Life Science portfolio in the San Francisco Bay area, which is widely seen as the second largest Life Science market in the U.S. Given the current increases in interest rates and the corresponding negative effect it is having on commercial real estate values, we are also pleased that we are in the financial position to opportunistically acquire this attractive, well located and long term, fully leased Life Science property at an attractive valuation.”
With this acquisition, DHC now owns four life science assets with approximately 327,000 square feet in the San Francisco Bay area market, in addition to its joint venture investment in two properties located in the same market.
Diversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust (REIT) that owns approximately $6.8 billion of high-quality healthcare properties located in 36 states and Washington, D.C. DHC seeks diversification across the health services spectrum: by care delivery and practice type, by scientific research disciplines and by property type and location. DHC’s life science and medical office portfolio includes over 100 properties totaling approximately nine million square feet and is occupied by almost 500 tenants. DHC’s senior living portfolio contains over 27,500 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. To learn more about DHC, visit www.dhcreit.com.
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A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
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Michael Kodesch, Director, Investor Relations