A new-to-market REIT has planted its flag in the Richmond region with its first nearby acquisition.
Flagship Health care Have faith in acquired a 37,000-square-foot medical workplace at 8007 Discovery Drive in Henrico County previous thirty day period.
The Charlotte-based mostly real estate investment decision have confidence in paid out $15 million for the house known as the Blair Constructing, which is in the Forest Business office Park around Henrico Doctors’ Healthcare facility. The vendor was domestically centered Lingerfelt CommonWealth.
The building was most lately assessed by the county at $6.6 million. It is thoroughly leased by Virginia Cancer Institute and Virginia Cardiovascular Experts. The latter is predicted to open its workplace there in the coming weeks. Flagship Executive Vice President of Acquisitions Gerald Quattlebaum said the tenants included to the enchantment of the acquisition.
“You have two dominant techniques in their specialties occupying the constructing on a lengthy-term basis. Both equally are north of 10 many years (on their leases),” Quattlebaum explained.
The constructing is the initial Richmond-place assets in the REIT’s portfolio. Flagship owns extra than 85 health-related properties across 12 states in the Southeast and Mid-Atlantic.
Quattlebaum mentioned the presence of several healthcare facility units in the area was a draw that enthusiastic its growth into the current market.
“There are a few balanced well being techniques, and this distinct asset is shut to HCA’s Henrico Physicians and (Bon Secours medical center) St. Mary’s,” he claimed. “It’s an powerful health care corridor up there.”
Quattlebaum stated the sale was off-market and that Flagship approached the vendor about the deal, an intentional method taken to increase Flagship’s likelihood of attaining the house.
“There’s a ton of capital attempting to get into well being care genuine estate, so it’s significant to locate deals that are off market place. It’s a issue of restricting who’s at the desk,” Quattlebaum stated. “The well being care actual estate area is hyper-aggressive. The source and desire are a very little little bit out of whack.”
Quattlebaum explained the healthcare business sector carries on to entice more interest from traders for the reason that it does not facial area some of the exact same worries as other forms of business office area amid traits toward remote do the job and hybrid schedules. Even with the expansion of telemedicine, he explained in-particular person treatment stays integral to the health and fitness treatment encounter.
“Hospitals and health professionals aren’t going absent,” he stated. “For the most component, you have to see your doctor in-human being and we hope to be ready to give them a very best-in-class facility to foster that interaction.”
Quattlebaum mentioned Flagship is on the lookout to even more increase its Virginia existence. He reported a different facility was underneath contract in Fredericksburg but declined to comment further more on that offer.
The REIT purchased the Virginia Physicians for Women of all ages facility at 1775 Lake Harley Travel in Prince George County for $6.3 million in 2020, in accordance to online county records.
The REIT is managed by Charlotte-centered Flagship Healthcare Qualities.
In other new overall health treatment market moves, new orthodontics techniques are cropping up in the West Close and Chesterfield. Bon Secours is about to open a freestanding crisis home in Chester, which will be its fourth in the area.