Wexford, investor in I-195 project and South Street Landing, bought by Ventas for $1.5B

VENTAS, a Chicago-based real estate investment trust focused on health care and life sciences projects, has purchased Wexford Science & Technology, investor in this three-phased development in the I-195 redevelopment district in Providence.  / COURTESY I-195 REDEVELOPMENT COMMISSION
VENTAS, a Chicago-based real estate investment trust focused on health care and life sciences projects, has purchased Wexford Science & Technology, investor in this three-phased development in the I-195 redevelopment district in Providence. / COURTESY I-195 REDEVELOPMENT COMMISSION

(Updated, 6:15 p.m.)
CHICAGO – Ventas Inc., a real estate investment trust with more than 1,300 properties, has announced its intention to purchase substantially all of the assets of Wexford Science & Technology LLC.

Wexford, the Baltimore-based life science and medical real estate company, is a partner in the life sciences development proposed late last year for the I-195 redevelopment district, and is a financial partner in the ongoing $220 million redevelopment of South Street Landing, both in Providence.

The first phase of the three-phased, mixed-use and biological sciences center proposed for two parcels on the I-195 land is expected to reach $250 million. The companies signed a purchase and sale agreement with the I-195 Redevelopment Commission in January, and the project remains in its due diligence period, according to a I-195 commission spokeswoman.

The sale, announced Tuesday by Ventas, will involve the cash purchase, for $1.5 billion, of the Wexford assets held by affiliates of Blackstone Real Estate Partners VIII L.P., according to a news release.

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Ventas, an S&P 500 company, has a portfolio that includes 25 Class-A rated assets leased to research universities, academic medical centers and research companies, including Yale University, the University of Pennsylvania Health System and Alexion Pharmaceuticals.

The transaction is expected to close in the fourth quarter, according to Ventas.

In a statement, Ventas CEO and Chairman Debra A. Cafaro said Wexford is a natural fit for Ventas and will reinforce its position as “the premier provider of capital at the intersection of health care and real estate.”

“This transaction also provides Ventas a unique opportunity to capitalize on increasing health care-driven research and development spurred and supported by top-tier research universities,” she said. “We believe the growth opportunity is significant and look forward to working with Wexford to help leading universities, academic medical centers and research companies fulfill their core missions.”

The sale will require Ventas to assume $33 million in Wexford liabilities. As part of the deal, Ventas will enter into a long-term management and pipeline agreement with Wexford, where it owns the real estate portfolio, and holds exclusive rights to develop future projects with Wexford. Wexford would continue to manage the portfolio, according to the statement.

As for the impact on Providence, Eric Cote, a spokesman for CV Properties LLC, said Wednesday the announced sale would not affect South Street Landing, which it is developing with Wexford. “South Street Landing continues to advance. There will be no impact on South Street Landing,” Cote said.

He would not address directly how the sale might impact the proposed development involving Wexford in the former Interstate 195 lands directly, but said CV Properties President and Founder Richard Galvin reiterates the sentiment of Wexford President Jim Berens, who said in the Ventas release: “We are delighted to have Ventas, the leader in health care real estate, as our strategic capital partner to continue growing a portfolio where there is cutting-edge, institutional quality life science research to meet the needs of a growing and aging population.”

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