Lillibridge acquires fifth on-campus portfolio from Ascension Health System

TWO MEDICAL OFFICE BUILDINGS ARE ON WASHINGTON DC HOSPITAL CAMPUS

CHICAGO IL and WASHINGTON DC, Jan-14, 2009– Chicago-based Lillibridge, one of the nation's largest private healthcare real estate firms, is continuing to grow its portfolio with the purchase of two medical office buildings (MOBs) located on the Providence Hospital campus in Washington, D.C. The sale marks the fifth time Lillibridge has acquired MOBs from Ascension Health System, further strengthening a relationship that started almost a decade ago.

"In spite of a very difficult capital and financing environment, Lillibridge was able to close this transaction," says Julius D. Spears, Jr., President and CEO of Providence Hospital. "We are sure that this was because of the company's solid banking relationships and the depth of its experience in healthcare real estate. Lillibridge has acquired several other Ascension properties in the past, and its acquisition of the two Providence medical office buildings continues a mutually beneficial relationship and brings great potential for good stewardship of its properties."

The acquisition includes two medical office buildings located on the hospital campus at 1160 Varnum Street, N.E. The first is DePaul Professional Building, a four-story, 69,000 square foot facility that also serves as the entrance to Providence Hospital.

The second of the on-campus MOBs is the two-story, 32,000 square foot Providence Medical Building, which is also connected to the hospital.

Lillibridge will continue to own and manage the fully leased buildings, and the company will offer ownership options to physician tenants. The healthcare real estate firm is also planning to improve the facilities with a major remodeling program. A significant portion of the renovation is slated for completion within the next 12–18 months.

Selling the MOBs was part of a strategy used by Providence Hospital and Ascension Health System to provide even better care for the hospital's patients. Many health systems today are using this strategy to generate funds for their operations. 
 
"When Ascension Health System wanted to free up some capital to invest in their core healthcare business we were glad to acquire these two properties from them," says Lillibridge Chairman and Chief Executive Officer Todd W. Lillibridge. "We're going to institute a number of improvements in order to bring the MOBs up to date, and to keep the physician tenants happy."