SOMERVILLE, MASS. — Union Square Station Associates (US2) will build a $160 million lab building in the Union Square area of Somerville, Massachusetts. The property will be a 175,000-square-foot lab building and office space, which will also feature 8,900 square feet of flexible space and ground-floor retail space. SGA is the project designer. Construction is slated to begin in late 2019.
VIENNA, W.VA. AND BELPRE, OHIO — MedProperties Realty Advisors LLC has acquired a 92,212-square-foot medical office building (MOB) in Vienna and a two-building MOB/ambulatory surgery center spanning 20,000 square feet in neighboring Belpre. Both properties are leased to the West Virginia University (WVU) Health System and upon closing of the sale, WVU entered into a new 15-year lease at both properties. In Vienna, the two-story MOB was originally built in 1982, renovated in 2009 and expanded by 32,000 square feet in 2012. Tenants include a variety of medical services and specialties, including family medicine; orthopedics; ear, nose and throat specialists; dialysis; and imaging. The building is situated at 800 Grand Central Mall, three miles from the Ohio-West Virginia border and four miles from the Belpre assets. The Belpre properties were built in 1960 and renovated in 2007, 2010 and 2012. Capital One provided acquisition financing to MedProperties. The seller and sales prices were not disclosed.
LITTLE ROCK, ARK. — Flagship Healthcare Properties has acquired Little Rock Diagnostic Clinic, a 96,692-square-foot medical office building (MOB). The sales price was not disclosed, although several local media outlets report the MOB traded for $34.8 million. The MOB was fully leased at the time of sale to Catholic Health Initiatives St. Vincent Medical Group. Little Rock Diagnostic Clinic is situated on Baptist Medical Center’s campus in the West Little Rock district. It offers an ambulatory surgery center; a comprehensive diagnostic imaging suite containing two MRIs, CT, ultrasound, X-ray and bone densitometry machines; a COLA Laboratory of Excellence-accredited lab; and an infusion therapy center. Flagship Healthcare Properties acquired the MOB from the physician partners of Little Rock Diagnostic Clinic on behalf of its private REIT, Flagship Healthcare Trust Inc. Brock Martin of Orion Capital Partners represented the buyer in the transaction. Todd Rice of Colliers International represented the seller. Capital Bank, a member of the First Horizon family of companies, provided acquisition financing for the transaction.
PLYMOUTH TOWNSHIP, MICH. — Henry Ford Health System has unveiled plans to revitalize the site of a former Kmart property in Plymouth Township with a new outpatient medical center. The multi-story, 120,000-square-foot center will offer specialty care services, as well as an emergency department and ambulatory surgery center. Kmart closed its doors at the site in November 2017. Henry Ford is expected to close on the purchase of the property in mid-August. Construction is slated to begin shortly thereafter and be completed in 2021. Gensler and Hobbs + Black Associates Inc. are the project architects. With the new facility, Henry Ford’s footprint in western Wayne County will expand to three outpatient facilities.
SAN DIEGO — JLL Income Property Trust, an institutionally managed daily NAV REIT, has acquired a two-building medical office campus known as Genesee Plaza for $90 million. Genesee Plaza is located in San Diego’s University Town Center, near the University of California, San Diego and Scripps Hospital campuses.
GILBERT, ARIZ. — Hammes Partners has purchased Spectrum Medical Commons, a medical office property located at 3367 S. Mercy Road in Gilbert. Irgens sold the property for $17.7 million, or $409.41 per square foot. Situated adjacent to Mercy Gilbert Medical Center, the asset features 43,355 square feet of Class A medical office space, including a surgery center. Additionally, the property features prominent building signage and near-immediate access to a full interchange at Val Vista Drive and the Loop 202 Freeway. Brian Ackerman of JLL facilitated the transaction.
WALTHAM, MASS. — ElevateBio, a biotech firm that specializes in gene therapy and development, will open a 108,000-square-foot office and lab space in Waltham, a western suburb of Boston. The facility will be located at 200 Smith Street in a former U.S. Post Office facility that was recently transformed into a 430,000-square-foot life sciences building. Anchor Line Partners LLC and Northwood Investors led the redevelopment project. ElevateBio’s new facility is expected to open in May 2020.
CHARLOTTE, N.C. — Medical office buildings (MOBs) were trading at steady increases year over year from 2011 to 2017, says P.J. Camp, principal and co-founder of Atlanta-based healthcare real estate investment firm Hammond Hanlon Camp. In 2018, however, MOB transactions started to dip, a trend that bled into the first part of this year. There were $14 billion worth of MOB transactions in 2017 but $12 billion worth in 2018. The first quarter of 2019 saw $1.7 billion worth of transactions in the sector, down 32 percent from the first quarter of 2018 and the lowest quarterly total in five years, says Camp. Camp was a participant on the investment panel at the ninth annual InterFace Healthcare Real Estate Carolinas conference. The half-day information and networking event was held May 30 in Charlotte and was hosted by Southeast Real Estate Business and Seniors Housing Business. Also participating in the panel were Mervyn Alphonso, senior vice president of Anchor Health Properties; Steven Reedy, managing director of CIT Healthcare Finance; Stephen Pandos, director of finance at Insite Properties; Gerald Quattlebaum, senior vice president of Flagship Healthcare Properties; Jim McMahon, senior director at Capital One Healthcare; and moderator Andy Lawler, healthcare development partner …
SANTA ANA, CALIF. — Primior is scheduled to break ground on First Harbor Plaza, the firm’s mixed-used development in Santa Ana, on June 26. Located at the intersection of North Harbor Boulevard and West First Street, the two-building First Harbor Plaza will offer 40,129 square feet of restaurant, retail, office and medical office space. Building 1 features 14,400 square feet in two large anchor suites and five smaller spaces on the first floor and the same configuration on the second floor. Building 2 will include 3,880 square feet on the first floor, two suites on the second floor totaling 3,778 square feet and a 3,778-square-foot suite on the third floor. Chase Bank will occupy the first-floor corner space at Building 1, and Optima Salon Studios will occupy the third-floor suite at Building 2.
NEW LENOX, ILL. — HSA PrimeCare, the national healthcare real estate division of HSA Commercial Real Estate, has begun development of a 40,000-square-foot medical office building on Silver Cross Hospital’s campus in New Lenox, immediately west of the I-355/I-80 interchange and about 40 miles southwest of Chicago. Scheduled for completion in December, the facility will house the hospital’s urgent care, occupational health and primary care clinics. Eppstein Uhen Architects is the architect. PREMIER Design + Build is the general contractor.
