Nuveen Global Cities’ Acquisitions Offer Increased Healthcare Exposure

Nuveen Global Cities REIT Inc. (GCREIT) recently acquired 10455 Pacific Center Ct., a healthcare-related R&D property, and Hillcroft Medical Center, a medical office property, for an aggregate purchase price of approximately $59 million. GCREIT’s new acquisitions offer increased exposure to the healthcare sector, which has been a steady performer through the pandemic and is not subject to work-from-home risks, given the need for in-person interaction and specialized use of the tenants.

“The long-term impact on space demand caused by the work-from-home model, which COVID accelerated, is largely unknown,” said Richard Kimble, portfolio manager of GCREIT. “While there are positive signals for demand for the office sector, we have increased our allocation to medical office, life science and R&D because we believe these alternative office uses are much more insulated from work-from-home solutions.”

Both acquisitions are located in target U.S. cities selected for resiliency:

• 10455 Pacific Center Ct. is a 92,000-square-foot R&D office located in the Sorrento Mesa submarket of San Diego. The property is 100 percent leased through August 31, 2028 to Dexcom, a medical device manufacturer.
• Hillcroft Medical Center is a 41,000-square-foot medical office building located in the Houston suburb of Sugar Land, TX. Approximately 92.5 percent of the net rentable area is leased to Hillcroft Medical Clinic Association.