), a healthcare real estate investment trust (REIT), through its
subsidiary, recently purchased an outpatient facility and
wellness center, Rex Healthcare campus in Knightdale for $24.76
million, according to a Business Journal report. The property
spans over 93,000-square-foot and is located at 6602 Knightdale
The purchase was made from a joint venture of NexCore Properties
of Denver, Colorado, and Heitman Capital Management of
Chicago. Notably, the outpatient facility was developed by
NexCore in 2008 for Rex. In 2010, a part of its ownership in that
property was vended to Heitman for $13.6 million.
Further, NexCore and Rex joined hands to put up the adjacent
hospital-affiliated Wellness Center spanning 32,000-square-foot
in Knightdale. In addition to buying the property, Ventas
inherited the 75-year land lease agreement of NexCore with Rex,
which continues to own the site spanning 7.7 acres.
Ventas, primarily engaged in the business of financing, owning
and leasing healthcare related and senior housing facilities,
boasts one of the largest and most diversified portfolios in the
healthcare sector with exposure to all types of facilities.
The product diversity of the company allows it to capitalize on
opportunities in different markets based on individual market
dynamics, and provides a hard-to-replicate competitive advantage
over its peers. This recent acquisition creates prospects for
additional revenue generation.
Recently, Ventas inked a deal with Atria Senior Living Inc.,
through which Ventas and the management team of Atria gained 100%
ownership of Atria. The company also disclosed that it
accomplished new investments worth $950 million during the fourth
quarter. Such strategic investments augur well going forward.
Ventas currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating. Considering the recent positive
developments on the acquisitions front and investments, the stock
might experience an upward revision of estimates, which, in turn,
will help it achieve a better Zacks Rank. One of its competitors,
), currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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VENTAS INC (VTR): Free Stock Analysis Report
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