Welltower Inc. announced Wednesday it will acquire a 43-acre, six-building, 270,000-square-foot medical office campus in Berkeley Heights for $140 million.
The campus, the Toledo, Ohio-based real estate investment trust said, will be master leased by Summit Medical Group, a multispeciality medical practice, under a new, 20-year lease.
“With this transaction, SMG is pleased to expand its relationship with Welltower to another one of our key medical practice locations,” Jeffrey Le Benger, chairman and CEO of Summit Medical Group, said.
The campus is the largest of five hubs in Summit’s 80-location hub-and-spoke model and will bring Welltower’s total Summit-leased footprint to more than 500,000 square feet, Welltower said.
The deal is expected to close in the third quarter of 2019.
The sale of the campus will help facilitate and will be conditioned upon Summit’s recently announced intended merger with CityMD, an urgent care platform.
“The merger of Summit Medical and CityMD is the latest example of how Welltower is facilitating and financing new models in health care delivery,” Thomas J. DeRosa, Welltower chairman and CEO, said. “This landmark transaction will create a physician-centric, consumer-oriented integrated delivery system that will improve access, quality and lower cost of care in one of the nation’s most populated regions.”