CHATTANOOGA, TENN. — Flagship Healthcare Properties has acquired East Ridge Physicians Building, a 27,657-square-foot medical outpatient building located at 929 Spring Creek Road in Chattanooga. Situated adjacent to the 128-bed HCA Parkridge East Hospital, the Class A facility was fully leased at the time of sale. The buyer acquired the property through its private REIT, Flagship Healthcare Trust. The seller and sales price were not disclosed. Built in 1985, East Ridge Physicians Building’s interior and exterior were renovated last year by the previous owner. Flagship will provide property management and asset management services for the facility.
Healthcare
First Citizens Bank Provides $53.5M Loan to Refinance Medical Office Facility in Birmingham
by John Nelson
BIRMINGHAM, ALA. — First Citizens Bank’s healthcare finance division, First Citizens Healthcare Finance, has provided a $53.5 million loan to refinance Grandview Physicians Plaza II, a 140,000-square-foot medical office facility located in Birmingham. The borrower was an affiliate of Rethink Healthcare Real Estate. Constructed in 2022, Grandview Physicians Plaza II is situated within the Grandview Medical Center Campus that occupies Affinity Hospital and Grandview Plaza I. Grandview Plaza II completes the primary medical campus for Grandview Health, which has signed a long-term anchor tenant lease for physician offices and hospital services. First Citizens Healthcare Finance also provided takeout financing for Grandview Physicians Plaza I in 2024.
McCarthy, HOK Break Ground on $145M Kedren Children’s Village Behavioral Health Hospital in Los Angeles
by Amy Works
LOS ANGELES — McCarthy Building Co. and HOK, as the design-build team, have broken ground on Kedren Children’s Village for Kedren Community Health Center Inc. in the Watts neighborhood of Los Angeles. Once complete, the $145 million Kedren Children’s Village will be one of the few pediatric-focused behavioral hospitals in the country and the first comprehensive behavioral health facility in South Los Angeles. Slated for completion in summer 2027, the 103,000-square-foot campus will include three main buildings — an inpatient psychiatric facility, outpatient services including primary, urgent care and pharmacy services, and a transitional housing development. The 24-unit transitional housing development is intended for families of patients receiving care, along with homeless families or individuals served by Kedren’s mental health programs and community outreach in need of temporary accommodations. Additionally, the campus will feature a parking structure, a physical therapy gym and an outdoor garden to offer therapeutic and recreational areas for patients’ enjoyment. McCarthy’s design-build services include self-perform concrete, utility and drywall installation, McCarthy Mapping, parking solutions and landscape design. The company will also provide its EQUIP service, an integrated healthcare build approach that includes equipment planning services coordinated from beginning to end, effectively reducing delays and costs down the …
Cushman & Wakefield | PICOR Brokers $6.1M Sale of Medical Office Portfolio in Tucson, Arizona
by Amy Works
TUCSON, ARIZ. — Cushman & Wakefield | PICOR has arranged the sale of a multi-property medical office portfolio in Tucson. A private investment group acquired the asset from an undisclosed investment REIT for $6.1 million. The 42,722-square-foot portfolio consists of multiple leased medical buildings at 4892 N. Stone Ave. and the Green Valley Medical Mall at 1055 N. La Canada Drive. Thomas Nieman and Bryce Horner of Cushman & Wakefield | PICOR represented the seller in the deal.
WOODBURY, MINN. — HealthPartners has opened its new specialty center in the Twin Cities suburb of Woodbury. The nearly 56,000-square-foot facility is located off I-94 and Radio Drive. Kraus-Anderson provided construction management for the multi-level project, which offers 13 medical specialties. Patients can also receive surgery, imaging, lab and infusion services. Construction began in September 2023.
GRAPEVINE, TEXAS — Charlotte-based investment firm Flagship Healthcare Properties has purchased a 17,724-square-foot medical facility in Grapevine, located in the northern-central part of the metroplex. The building at 2201 Westgate Plaza was built in 2010 and houses clinical office space and a surgery center with eight exam rooms and two operating rooms. The facility was fully leased at the time of sale. The seller and sales price were not disclosed.
SOMERVILLE, MASS. — Gantry, a commercial mortgage banking firm based in San Francisco, has arranged a $30 million loan for the refinancing of a 101,000-square-foot medical office building in Somerville, located just outside of Boston. The building at 40 Holland St. is known as Davis Square Center and was fully leased at the time of the loan closing, with regional provider Atrius Health serving as the anchor. Andy Bratt and Sean Kuang of Gantry arranged the five-year, fixed-rate loan, which carries a 30-year amortization schedule, on behalf of the owner, an undisclosed healthcare REIT. An unnamed insurance company provided the debt.
Duke Health Acquires Lake Norman Regional Medical Center in Metro Charlotte for $284M
by John Nelson
MOORESVILLE, N.C. — Duke University Health System (Duke Health), a Durham, N.C.-based healthcare affiliate of Duke University, has acquired Lake Norman Regional Medical Center, an acute-care hospital in the Charlotte suburb of Mooresville, for $284 million. Formerly owned by subsidiaries of Tennessee-based Community Health Systems Inc., the 123-bed facility will now operate as Duke Health Lake Norman Hospital. “We have a bright future ahead and look forward to bringing the excellence and innovation of Duke Health to enhance the care offered at Duke Health Lake Norman Hospital and clinics,” says Craig Albanese, CEO of Duke Health. Duke Health Lake Norman Hospital offers 24-hour emergency care, labor and delivery services, cardiology, surgical and orthopedic care and an outpatient imaging center. The hospital has been operating since 1926 when it opened as Lowrance Hospital. The property comprises a main 171,000-square-foot hospital building and a separate 6,200-square-foot outpatient facility. Over the next several months, the hospital’s electronic medical records will be integrated into Duke Health’s system for patients to receive full access to the provider’s specialty care. Employees and providers at the hospital were also offered jobs with Duke Health to “enable a seamless transition for patients to have continued access to the providers, …
NEW BRUNSWICK, N.J. — New Jersey-based developer AST has completed a 229,000-square-foot healthcare project in the Central New Jersey community of New Brunswick. The 15-story ambulatory medical pavilion is situated within the Robert Wood Johnson University Hospital campus. The facility, construction of which topped out in August 2022, expands outpatient access to care and clinical experts who support existing RWJBarnabas Health hospital services. Project partners included Jarmel Kizel (architect), O’Donnell & Naccarato (structural engineer), Langan (civil engineer) and Torcon Inc. (general contractor and construction manager).
NEWPORT BEACH, CALIF. — CBRE has facilitated the sale of 1419 Superior Avenue, a medical office building in Newport Beach, to a local owner-user. Equity Enterprises Ltd. sold the property for $5 million. Anthony DeLorenzo, Sammy Cemo, Bryan Johnson and Harry Su of CBRE represented the seller in the deal. Situated across from the 498-bed acute care hospital Hoag Newport Beach, the 8,935-square-foot building was 62 percent leased at the time of sale to four tenants.