St. Luke's Episcopal Health System, a two-hospital system based in Houston, acquired a 51% interest in 61-bed Patients Medical Center, a physician-owned facility in Pasadena, Texas. The deal was arranged by New York-based Norvin Properties, a real estate private-equity fund that specializes in the healthcare industry. Norvin Properties serves as a for-profit landlord for a number of Houston-based healthcare providers, including Texas Children's Hospital and the University of Texas MD Anderson Cancer Center. The physician-owners of PMC approached Norvin Properties about a year ago, hoping to change their arrangement with their joint-venture partner, Cottonwood Partners, a Salt Lake City-based real estate investment and management company. After negotiating an agreement to buy PMC's 117,000-square-foot building and 13 acres of land for roughly $40 million, leaders at Norvin realized more restructuring still needed to be done, said Norman Livingston, Norvin Partners' founder and managing partner. "In addition to simply acquiring the real estate, we soon recognized that we could add even greater value by combining PMC's operations with those of St. Luke's," Livingston said in a news release. The transactions closed Oct. 29, and Norvin leased the property back to St. Luke's and PMC, according to the release. PMC's shareholders, who number around 120, will control 49% of the operating company.
St. Luke's buys stake in Patients Medical
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