Med Office Daily - February 19, 2025

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NEWS ROUNDUP

ACQUISITION: Flagship Healthcare Properties acquires a fully leased medical office building in Fredericksburg, VA. Located at 1071 Care Way, the Class A, multi-tenant MOB spans 100% occupancy and was acquired through Flagship Healthcare Trust. The property is situated in the region’s growing medical district, adjacent to the 450-bed Mary Washington Hospital. The 2007-built facility is leased to Rappahannock Women’s Health Center and LabCorp, long-time partners with over two decades of shared referrals. Flagship Healthcare Properties will oversee property and asset management. Jim Kornick and Joe French of Avison Young represented the seller in the transaction.

ACQUISITION: Montecito Medical Real Estate acquires a 25,000 SF medical office building in Roseville, CA, for $9.205 million. The fully leased property is occupied by Sacramento-based Sutter Health and was purchased in an off-market transaction. Previously leased to UC Davis Medical Group, Sutter plans to take full occupancy in Q1 2025. This marks Montecito’s first acquisition in the Sacramento region, adding to its $6 billion nationwide portfolio. The building last sold in 2008 for $7.59 million.

LEASE SIGNING: EPIC Management and Beaver Medical Group sign a long-term lease for a 44,357 SF MOB in Beaumont, CA. The three-story facility, located at the Sundance Corporate Center, will nearly double the group’s footprint in the Inland Empire and will feature an urgent care center, laboratory services, and radiology/imaging services. Lee & Associates’ Tom Pierik represented the tenant, while Rich Erickson represented the landlord, Beaumont Sundance LLC. Beaver Medical Group also secured an option to lease an additional 86,000 square feet for future expansion.

DEVELOPMENT: MUSC Health breaks ground on the MUSC Health Bluffton Medical Pavilion in Bluffton, S.C. The three-story 54,000 SF medical office building will be located at 700 Buckwalter Towne Blvd., and will consolidate existing services and introduce new specialties, including adult and pediatric primary care, oncology, urgent care, vascular care, and a pulmonary/sleep lab. The medical pavilion will be built adjacent to the planned Beaufort Memorial Bluffton Community Medical Campus, further expanding healthcare access in Beaufort, Jasper, and Hampton counties. The project is expected to create nearly 60 new jobs, including 17 providers. President of MUSC, David J. Cole, M.D., FACS, represented MUSC.

DEVELOPMENT: A three-story MOB is set to be built at 451 E. SH 114 in Southlake, Texas, adjacent to Methodist Southlake Medical Center. The 32,116 SF facility will include pedestrian access to the hospital's parking garage. The Southlake City Council approved the site plan on Feb. 4, revising an earlier 2007 proposal for a six-story, 90,000 SF building. The project, developed by Southlake Land Holdings, LP, spans 2.65 acres. No construction timeline has been announced.

FINANCING: Northmarq secures a $5.67 million acquisition loan for a MOB in Baltimore, Maryland. The four-story, 31,752 SF medical/research office building, located within walking distance to Johns Hopkins University Hospital, is fully occupied by Johns Hopkins University. Wyatt Campbell and Eric Flyckt of Northmarq’s San Diego office arranged the financing through a CMBS lender. The 10-year loan features full-term interest-only payments at a rate slightly above 4.5% and a 65% loan-to-purchase-price ratio. Northmarq will service the loan.

MED OFFICE PROPERTIES FOR SALE

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9,964 SF Medical Office Building | Access to Illinois Route 23 | Canopy for Patient Drop-Off | 54 Parking Spaces

1,368 SF Building | Access to 5 Freeway | 4 Exam Rooms, 2 Offices, Expansive Waiting Room, and Reception Area | 6.67:1000 Parking Ratio

7,564 SF Building | Access to John Wayne/Orange County Airport | 11 Patient Rooms, 5 Offices, Waiting Room, and Reception Area | 2.78/1,000 SF Parking Ratio

MED OFFICE PROPERTIES FOR LEASE

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117,876 SF MOB | 2,937 SF Suite Available

1,612-16,112 SF Suites | 65,650 SF Medical Office Building (2 Story) | 4.00/1,000 Parking Ratio | Surface Parking

32,263 SF Medical Office Building (2 Story) | 5/1000 Parking | Renovated in 2013

ONE MORE THING

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