NEWTON, Mass.–(BUSINESS WIRE)–Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has acquired 47071 Bayside Parkway located in Fremont, Calif., for $82 million, excluding closing costs, reflecting a current GAAP cap rate 6.5% at closing. The newly renovated asset includes 89,000 leasable square feet of laboratory and corporate office space that is 100% leased to Alamar Bioscience until January 2034. The property is located along the I-880 central corridor, a sub – Established and growing San Francisco Bay Area life sciences market.
Jennifer Francis, President and CEO of DHC, issued the following statement:
“We are excited to grow our life sciences portfolio in the San Francisco Bay Area, which is widely considered the second largest life sciences market in the United States. Given the current increases in interest rates and the corresponding negative effect they have on commercial real estate. values, we are also pleased to be in a financial position to opportunistically acquire this attractive, well-located, long-term life sciences property, fully leased at an attractive valuation.
With this acquisition, DHC now has four life sciences assets of 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 in high-quality healthcare properties located in 36 states and Washington, D.C. DHC is seeking to diversify into health services as a whole: by type of care delivery and practice, by scientific research disciplines, and by property type and location. DHC’s medical and life sciences office portfolio comprises more than 100 properties totaling approximately nine million square feet and is occupied by nearly 500 tenants. DHC’s senior living portfolio includes over 27,500 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading US alternative asset management firm with over $37 billion in assets under management and over 35 years of institutional experience in buying, sale, financing and operation of commercial real estate. DHC is headquartered in Newton, MA. To learn more about DHC, visit www.dhcreit.com.
WARNING REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Additionally, whenever DHC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, DHC makes forward-looking statements. These forward-looking statements are based on DHC’s current intention, beliefs or expectations, but the realization of forward-looking statements is not guaranteed and may not occur. Actual results may differ materially from those contained or implied by DHC’s forward-looking statements due to a variety of factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond DHC’s control. For instance:
Ms. Francis’ statements regarding DHC’s growth of its life sciences portfolio through the opportunistic acquisition of the Fremont, California property at an attractive valuation may imply that DHC will be in a financial position to further develop its portfolio by acquiring properties at similar or better valuations in this region or elsewhere. However, DHC’s life sciences and medical practice portfolio is subject to a variety of risks, many of which are beyond its control, including economic and market conditions, such as current inflationary conditions, rising interest rates interest and a possible recession. Accordingly, DHC may not be in a financial position to expand its life sciences portfolio through similar acquisitions in the future. In addition, property values change for a variety of reasons, many of which are beyond DHC’s control, and property values may decrease. Accordingly, DHC may not achieve the returns it expects from this acquisition.
Information contained in or incorporated into DHC’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in DHC’s periodic reports, identifies other important factors that could cause DHC’s actual results to differ materially from those stated or implied. by DHC’s forward-looking statements. DHC’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance on forward-looking statements.
Except as required by law, DHC does not intend to update or modify forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with Nasdaq-listed beneficial interest transferable shares.
No shareholder, trustee or officer is personally liable for any act or obligation of the Trust.