Heitman pays $47M for 2 MOBs in DC area – Commercial Property Executive

Professional centers in Shady Grove. Image courtesy of JLL Capital Markets

A subsidiary of Heitman has acquired two medical office buildings in Rockville, Md. for $46.8 million, Montgomery County records show. A joint venture by MedProperties and anchor health properties sold Shady Grove Professional Centers I and II totaling 103,249 square feet.

JLL Capital Markets brokered the deal for the seller. The buildings last traded for $31 million in 2018, according to CommercialEdge data.

Completed in 1999, Shady Grove Professional Center I is a 51,191 square foot, four story building and includes an on-site pharmacy. The property has 13,396 square feet of floor space and offers 220 parking spaces at a ratio of 4.3 spaces per 1,000 square feet. The second, 52,300 square meter building was completed in 2002 and rises over four floors. It has 13,075 square feet of pavement and offers 173 parking spaces at a ratio of 3.3 spaces per 1,000 square feet.

ALSO READ: Positive forecast for healthcare real estate

At the time of the current transaction, the property was 87 percent let. Anchor tenants are Capital Digestive Care, Johns Hopkins and independent medical groups. Both facilities offer a total of 15 medical specialties as well as outpatient surgical centers with 18 operating and intervention rooms.

The properties are located at 15001 and 15005 Shady Grove Road, 20 miles from Washington, DC and 27 miles from Baltimore. The doctor’s offices are adjacent to the Adventist Healthcare Shady Grove Medical Center, while the Johns Hopkins University-Montgomery County campus is within walking distance.

That JLL Capital Markets The team included Managing Director Brannan Knott, Senior Managing Director Mindy Berman, Directors Dave Baker and Anthony Sardo, and Senior Director Chris Hew and Associate Landon Weaver. Senior Managing Director Amanda Davis and Senior Vice President JG Cahill provided leasing support.

Low-risk medical practices

The medical office market has proven resilient through a global health crisis and the current economic climate. According to a report by Brown Gibbons Lang & Co., the market saw more than $2.9 billion in transaction volume in the second quarter of 2022, despite a 10.4 percent decline from the second quarter of 2021 Average The price per square foot has increased 20 percent since the second quarter of last year.

Among the largest deals for physician offices in the DC metro area was Global Medical REIT’s acquisition of Prosperity Plaza, a 96,070 square foot Class B building in Fairfax, Virginia for $21 million.


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