This week’s news roundup is dedicated to recent activity in the medical office for sale and lease sector. Several notable deals closed during the past few weeks in markets across the country. Check out a few of them below.
HSS Opens New Hudson Yards Office Space
Hospital for Special Surgery (HSS) — a leading academic medical center that has ranked first in the country in orthopedics for the past 10 years — recently opened a new outpatient center in Hudson Yards in Manhattan. The center staff includes physicians and surgeons who specialize in pain management, physical medicine and rehabilitation, and bone and joint replacements. This new facility caters to area residents, as well as office workers commuting to New York City’s newest commercial hub, and offers both on-site and virtual care.
The facility includes 15,000 square feet of class A, Hudson Yards office space and primarily addresses the musculoskeletal conditions that account for more than 16% of total employer healthcare costs.
Bryan T. Kelly, MD, surgeon-in-chief at HSS, said, “High-quality injury prevention, diagnosis, treatment, and recovery are large and increasingly important competitive variables for large employers. The Hudson Yards community of employers and residents is a natural fit for HSS.”
FivePoint Gateway Commands $108 million
City of Hope National Medical Center, based in Duarte, Calif., closed on FivePoint Gateway in the Irvine Health and Science Complex. The private research and care organization aims to create a comprehensive cancer campus as part of its care network across Orange County.
Subject to the sale were 11 acres of partially undeveloped land. The property is home to one existing building that incorporates 190,000 square feet of grade A office space. City of Hope intends to convert the building at 15161 Alton Pkwy. into a state-of-the-art cancer center, which is due for delivery by 2021. This will be the entity’s first comprehensive facility outside of its flagship campus in the greater Los Angeles area. Moreover, plans call for the development of an acute care cancer hospital on the undeveloped portion of the purchased acreage. This development would be the first hospital in Orange County that is dedicated exclusively to the treatment of cancer. Completion is estimated for 2025.
Harrison St. Real Estate Sells Fairfax County Medical Office Building
Avison Young — one of the fastest-growing commercial real estate (CRE) services firms — has arranged the sale of a medical office building located in the Merrifield submarket of Fairfax, Va. Boulevard Medical Center is located at 8301 Arlington Boulevard and incorporates 53,430 square feet of Fairfax office space across five stories.
Accessible from Route 50 and the Capital Beltway, the property offers high visibility and good connectivity. Specifically, it’s located within one mile of Inova Fairfax Hospital, Inova Center for Personalized Health and the Mosaic District, as well as just few blocks from the Dunn Loring-Merrifield Metro station, which provides access to the Orange Line. Zoning allows for non-retail commercial uses and presents an opportunity to redevelop the building as hospitality or senior housing.
Avison Young Principal, Jim Kornick, said, “In spite of the challenges presented by the COVID-19 epidemic, we were able to find a private buyer with whom we executed a smooth transaction.”
The buyer and the sale amount were not disclosed.
CommunityMed Urgent Care Leases 7th North Texas Office Space in Argyle
NewQuest Properties added CommunityMed Urgent Care to the tenant roster at Lantana Town Center in Argyle, Texas, just north of the Dallas-Fort Worth metroplex. The urgent care provider signed a long-term lease for 3,150 square feet of the grocery-anchored, mixed-use project. CommunityMed took immediate occupancy of the premises to set up a COVID-19 testing site at what will be its seventh North Texas location. It is scheduled to be fully operational by July.
Josh Friedlander, vice president of NewQuest Properties, said, “On day one, CommunityMed stepped in to start testing. It’s been an eventful few months as we worked out the details of the lease. It was an opportunity to get a location in a community with strong demographics and lack of competition.”
Property images courtesy of Yardi Matrix.