REIT buying Las Vegas medical buildings

Tuesday, Aug. 27, 2002 | 11:12 a.m.

SUN STAFF AND WIRE REPORTS

Windrose Medical Properties Trust of Indianapolis said Monday it closed its acquisition of five properties in Las Vegas and Memphis for $50 million, funding the deals with proceeds from its initial public offering as planned.

The real estate investment trust said it bought four outpatient treatment centers in Las Vegas and the Urology Center of the South near Memphis. The properties, under contract before the company's Aug. 15 IPO, are fully leased and range from 26,000 to 58,000 square feet.

Windrose expects to acquire two additional properties within the next several weeks for $13 million, including $8.9 million of assumed debt.

A company spokesman said the properties, located in Charlotte and Las Vegas, will also be funded with proceeds from the IPO.

On Aug. 21, Windrose received net proceeds of $60.3 million from its IPO of 5.6 million shares priced at $12 each. The company stock now trades on the New York Stock Exchange.

The Las Vegas property Windrose plans to buy for $7.3 million is Partell Medical Center at 2870 Maryland Parkway near Sunrise Hospital. It's leased to 11 tenants, the most significant being Jacobs & Modaber M.D.'s Ltd. The seller is J&M Quail Meadows LLC.

The properties purchased last week in Las Vegas are:

Windrose said the sellers of the Sierra buildings are affiliates of CB Richard Ellis Corporate Partners LLC, which as part of the deal will also receive warrants exercisable over two years to buy 25,000 shares of Windrose stock at the IPO price.

Sierra Health Services Inc., Nevada's largest health insurer and the operator of Southwest Medical Associates clinics in Las Vegas, said in January 2001 it had sold 11 Las Vegas buildings -- the bulk of its real estate holdings -- to CB Richard Ellis Corporate Partners for $115 million.