NEW YORK CITY — Mount Sinai Health System has signed a 17,464-square-foot lease for a new cardiology office at 373 Park Avenue South in Manhattan’s Flatiron District. The lease term is 10 years. The 12-story building spans 110,000 square feet and was originally constructed in the early 1900s. Leonard Zimmerman of Hemsley Spear represented the tenant in the lease negotiations. Kate Goodman represented the landlord, ATCO Properties & Management, on an internal basis.
SMITHFIELD TOWNSHIP, PA. — Co-developers DEPG Associates and ARCTRUST have broken ground on a 40,000-square-foot medical office building in Smithfield Township, located in Lehigh Valley. The project, which represents the first of a larger, five-building development for St. Luke’s University Health, will be situated within the 120-acre Smithfield Gateway mixed-use development. Completion of the building is slated for January 2023, and the first phase of the larger project is scheduled for a 2024 delivery.
WICHITA, KAN. — Newmark has brokered the sale of Cypress Surgery Center in Wichita for $15.3 million. The 33,620-square-foot outpatient surgery building is located within the Cypress Medical Park. The property is fully leased to a joint venture between Surgery Partners and a group of 137 local physicians under a long-term lease. The surgery center houses six operating rooms, three pain rooms and two endoscopy suites. Ben Appel and Bert Sanders of Newmark represented both the seller, DeSanto Realty Group, and the buyer, Montecito Medical Real Estate.
IRVINE, CALIF. — Boureston Development has completed the disposition of Woodbridge Square, a multi-tenant medical office building in Irvine. Anchor Health Properties acquired the property for $27.6 million. Located at 4980 Barranca Parkway, the 36,104-square-foot building was 94 percent leased at the time of sale to 18 medical, dental and laboratory tenants. Sean Fulp, Mark Schuessler, Ryan Plummer, John Scruggs, Kevin Shannon, Paul Jones and Ken White of Newmark represented the seller in the transaction.
FORT WORTH, TEXAS — A partnership between Dallas-based private equity firm Velocis and Prime Healthcare Properties has acquired 8.5 acres in the Willow Park area of Fort Worth for the development of a medical office complex. The $35 million project will consist of two buildings that will be constructed on speculative bases and will total 100,000 square feet. Grace Hebert Curtis Architects is designing the project. Wier & Associates is the civil engineer, Brasfield & Gorrie is the general contractor. JLL will lease the buildings. Construction is slated to begin this year and to be complete in 2023.
MANHATTAN, KAN. — Scorpion Biological Services, a subsidiary of Heat Biologics Inc., is building a new 500,000-square-foot biomanufacturing facility in Manhattan. The $650 million project will create 500 new jobs in the area within the next seven years, according to Gov. Laura Kelly. The facility will support the development of vaccines that enable an accelerated response to global biological threats. The company also intends to provide commercial level development, manufacturing and bioanalytical testing services at every stage for biopharmaceutical products on a fee-for-service basis to the global healthcare industry. The project came together as a result of partnerships between the Kansas Department of Commerce, Kansas State University, Kansas State University Innovation Partners, the City of Manhattan, the Manhattan Chamber of Commerce, Pottawatomie County, Pottawatomie County Economic Development Corp., Manhattan Area Technical College, Evergy, CRB and Realty Trust Group. A timeline for construction was not provided.
CHICAGO — Chicago-based JLL has arranged the sale of a 27-property healthcare portfolio totaling 1.2 million square feet for $600 million. The assets are located in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma and Texas. The portfolio includes 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals and one heart and surgical hospital. Nine of the properties are in Arizona. The portfolio is 97 percent occupied by tenants such as Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare. A JLL Healthcare Capital Markets team led by Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach represented the seller, Harrison Street. NorthWest Healthcare Properties was the buyer.
COLORADO SPRINGS, COLO. — Cushman & Wakefield has arranged the sale of Interquest I-IV, a four-building flex, office and healthcare portfolio located at 9925, 9945, 9950 and 9960 Federal Drive in Colorado Springs. An undisclosed seller sold the asset to a Denver-based private partnership for an undisclosed price. Aaron Johnson and Jon Hendrickson of Cushman & Wakefield represented the seller. Constructed in phases in 2001 and 2008/2009, the buildings offer a total of 241,232 square feet of flex, office and healthcare space. At the time of sale, the portfolio was 76 percent leased to a healthcare and technology tenants. Interquest I (9945 Federal Drive) and Interquest II (9925 Federal Drive) have LEED Silver certification.
PHOENIX — Meridian has completed the sale of Grunow Memorial Medical Center, a medical office property located in Phoenix. A private Canadian investor acquired the asset for $17.9 million. Located at 925 E. McDowell, Grunow Memorial Medical Center features 53,000 square feet of medical office space. At the time of sale, the building was 90 percent leased to 12 tenants, including DaVita Dialysis. Lester A. Bryon designed the property, which was constructed in 1931. Mindy Berman of JLL represented Meridian in the transaction.
MONTVALE, N.J. — JLL has negotiated a 60,000-square-foot healthcare lease in the Northern New Jersey community of Montvale. The tenant, Valley Health System, will move into North Market, an 86,000-square-foot building in the preconstruction phase of development. Frank Recine of JLL represented the landlord, The S. Hekemian Group, in the lease negotiations. Robert Rudin and Peter Hamburger of Cushman & Wakefield represented the tenant. North Market will also include 26,000 square feet of retail space.