Global commercial real estate broker Avison Young announced the Doctors Medical Park office complex sale earlier this month.
Aventura, Fla.-based real estate private equity firm Blue Arch Capital acquired the medical center at 10301 Georgia Ave. for $15.25 million. The property, which spans approximately 98,000 square feet and was built in the 1980s, consists of three buildings with parking lots spread over 4.8 acres and is situated about a mile north of Holy Cross Hospital and the Forest Glen station on Metro’s Red Line.
The complex’s current tenants include Community Radiology Associates, Fresenius, Capital Women’s Care, and The Ladas Eye Group.
“This sale demonstrates that investors and lenders recognize the strength of the performance of medical outpatient buildings in contrast with the challenges faced by other sectors, such as office,” said Jim Kornick, principal and co-lead of Avison Young’s U.S. capital markets healthcare team.
According to the Washington Business Journal, Kornick and his team represented the seller, Medical Center Associates LLLP, which has family ties to the original developer of the medical park. Avison Young also facilitated Blue Arch’s acquisition financing from an undisclosed life insurance company.
Doctors Medical Park and adjacent parcels are identified as redevelopment opportunities in the county’s 2020 Forest Glen and Montgomery Hills Sector Plan. These sites cover 13.7 acres and include a low-rise office condo and the county-owned Dennis Avenue Health Center.
According to WBJ, other opportunity sites nearby include:
- The Forest Glen Medical Center, another low-rise medical office property which Dallas-based JLB Partners had under contract for residential redevelopment before the deal fell through;
- The Fields of Silver Spring apartment complex; and
- A Metro-owned parking lot near the Forest Glen station, which the transit agency sees as a potential site for 340,000 square feet of new development.
Rendering Courtesy of Avison Young