Vital Infrastructure Property Trust has acquired the East New York Health Hub, a 142,249-square-foot medical outpatient building in Brooklyn, for $126.7 million (US$89.9 million). The purchase was announced on July 23, 2026.
The seven-storey property at 101 Pennsylvania Avenue was completed in 2019 and is purpose-built for outpatient care, meaning treatment that does not involve an overnight stay. On the stated price and floor area, the REIT paid roughly $890 per square foot, or about US$630.
The building is leased to AdvantageCare Physicians New York, with a remaining term of approximately 11 years. Vital describes ACPNY as one of the state's largest integrated primary and specialty care networks, serving around 500,000 patients across the five boroughs and Long Island. Other occupants named in the release include New York Cancer & Blood Specialists, Lenox Hill Radiology, New York Health, Advanced Dermatology and Quest Diagnostics.
Funding came from two sources: net proceeds of the REIT's recently completed European property sales, and drawings on its credit facility. No new units were issued for the transaction, according to the release, and no equity raise was disclosed alongside it. The REIT did not break down how much of the purchase price came from each source, nor did it disclose the going-in capitalisation rate or the property's net operating income.
Vital says the acquisition is expected to be immediately accretive to funds from operations per unit — FFO being the standard real estate earnings measure that adds depreciation back to net income. That is a forward-looking expectation on the company's part rather than a reported result, and the size of the effect was not quantified.
The location sits directly above the Liberty Avenue subway station and next to Broadway Junction, a transit interchange in eastern Brooklyn.
Chief executive Zach Vaughan called the building an "institutional-quality, multi-disciplinary healthcare facility located in a high-barrier market," and said the deal expands the REIT's presence in the United States.
Vital Infrastructure trades on the Toronto Stock Exchange under VITL.UN. As at March 31, 2026, it reported interests in 134 income-producing properties totalling 13.1 million square feet of gross leasable area, spread across North America, Brazil, Europe and Australia, with a portfolio weighted toward outpatient, inpatient and health research facilities on long-term indexed leases.
The release did not state the REIT's leverage after the acquisition, the amount drawn on the credit facility, or the terms of that facility.
Source: Newsfile
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