Nationwide Health Properties, Inc. (NHP), a real estate investment trust (REIT) that invests in healthcare facilities, recently acquired 2 medical office buildings (MOB) from Pacific Medical Buildings LLC. Pacific Medical specializes exclusively in the development and management of MOB, outpatient facilities and parking structures for hospitals, medical groups and universities.

Nationwide Health acquired the Pomerado Outpatient Pavilion in Poway, California for approximately $74 million. The company also acquired the Mercy Gilbert Medical Plaza in Gilbert, Arizona through a joint venture in which it owns a 71.2% stake. Nationwide Health contributed $6.3 million in cash for the acquisition. In addition, the company also decided to provide up to $8.8 million as project financing Incorporatedluding $6.8 million that was disbursed initially.

At the same time, Nationwide Health amended the original agreement with Pacific Medical effective Feb 1, 2010. Under the amended terms of the agreement, Nationwide Health would have to either provide or arrange financing for approved developments of future medical office buildings of the joint venture. In return, the company would receive preferred returns for its investments along with a reduction in acquisition pricing.

Nationwide Health is structured as a triple-net lease healthcare REIT, which includes base rent (a regular income in the form of rent payments), pre-set thresholds (much like retail percentage rent clauses), and financing options (in the form of mortgage loans). The base rent and pre-set threshold agreements help eliminate operational risks, which are transferred to the lessee. The lessee also benefits by obtaining operational control and a larger share of profits without investments.

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