Marcus & Millichap has completed a sale-leaseback of a medical office portfolio in the Louisville metropolitan statistical area, highlighting ongoing investor interest in healthcare real estate. The portfolio comprises three medical office buildings totaling 34,313 square feet and sold for a little more than $6.2 million. The transaction involved a sale of the real estate with a simultaneous long-term leaseback to the existing medical user.
The portfolio is occupied by an established medical practice under a 10-year triple-net lease, providing the buyer with contractual income and limited landlord responsibilities. The lease structure includes annual rent increases, which Marcus & Millichap characterized as an important component of the investment profile, offering built-in revenue growth over the lease term.
According to Gus Poulos, associate director investments with Marcus & Millichap, the combination of a long-term triple-net lease, scheduled rent escalations, and the tenant’s expanding medical practice created a compelling investment scenario for private capital. Poulos noted that as the Louisville area continues to experience rapid growth, healthcare real estate remains a highly sought-after asset class among private investors.
Poulos and Forest Bender, investment specialists in Marcus & Millichap’s Indianapolis office, held the exclusive listing to market the three-building portfolio on behalf of the seller, described as a local private individual. The same team also procured the buyer, identified as a private net lease real estate investment trust, underscoring the interest of net lease-focused institutional buyers in medical office assets.
Built in 1985, the portfolio is located approximately six miles from downtown Louisville and about 10 miles from Louisville Muhammad Ali International Airport. The location offers access to the broader Louisville area while remaining within a short distance of the city’s core and its regional transportation hub.
The medical office buildings support a diversified range of healthcare services under the tenant’s practice. On-site offerings include primary care, urgent care, laboratory services, and behavioral health services. These uses position the portfolio as a multi-service healthcare destination for patients in the surrounding area.
The structure of the transaction as a sale-leaseback allows the operating medical practice to continue delivering services from its existing locations under a long-term lease while transferring ownership of the real estate to the REIT buyer. For the buyer, the deal provides exposure to a growing healthcare tenant in the Louisville MSA, supported by a triple-net lease with defined annual rent increases.
Overall, the transaction illustrates ongoing demand for medical office assets leased to established practices on long-term, net lease structures, particularly in growth markets where healthcare utilization and population trends continue to support investor interest.
