Banking & Finance

M&A Deals Lead to $104M in Property Sales

YOUNGSTOWN, Ohio — Nearly $104 million in Mahoning and Trumbull County properties — hospitals and restaurants — traded hands last month as the result of two national merger and acquisition deals.

Four local properties were involved when Boston-based Steward Health Care LLC acquired Tennessee-based IASIS Healthcare LLC. The transaction makes Steward the largest private for-profit hospital operator in the United States with 36 hospitals across 10 states, and managed care operations in Arizona, Utah and Massachusetts.

As part of the financing of that deal, Alabama-based Medical Properties Trust agreed to acquire the interests of substantially all of IASIS’s hospital real estate subject to long-term leases and loans with Steward. MPT acquired four Ohio properties now leased to Steward Health Care:

  • Northside Medical Center in Youngstown (pictured above);
  • Trumbull Memorial Hospital in Warren;
  • Hillside Rehabilitation Hospital in Warren; and
  • An urgent care center in Austintown.

The four properties sold for a combined $91.9 million.

MPT also acquired and leased back Sharon Regional Health System in Sharon, Pa., to Steward.

Also last month, five local Bob Evans restaurants were sold when San Francisco-based private equity investment firm Golden Gate Capital completed its $565 million acquisition of Bob Evans Restaurants from Bob Evans Farms Inc. To help finance that deal, the new owner then sold and leased back most of those restaurants to other buyers.

Rochester, N.Y.-based Broadstone Net Lease Inc., a private REIT, acquired the restaurant at 7347 California Ave. in Boardman. And a non-traded REIT sponsored by Phoenix-based Cole Capital acquired the restaurant at 1100 N. Canfield Niles Road in Austintown.

Locally, affiliates of Golden Gate bought and still own the restaurants at: 2299 E. State St. in Salem; 16230 Dresden Ave. in East Liverpool; and 3818 Belmont Ave. in Liberty Township.

Editor’s Note: See the list of the 20 largest commercial real estate transactions during the month of May in the MidJune print edition of The Business Journal, delivered to subscribers’ mailboxes next week.

Published by The Business Journal, Youngstown, Ohio.