Avison Young selected to sell two-building, 224,037-SF medical office portfolio in Florida occupied by the U.S. Department of Veterans Affairs
Healthcare assets with leases backed by the Fed hit the market in Tampa and Sunrise
Tampa and Sunrise, Fla. — Avison Young’s Florida Capital Markets Group has been exclusively retained to sell a two-building, 224,037-square-foot medical office portfolio fully occupied by the U.S. Department of Veterans Affairs (VA). The portfolio features long-term leases that are backed by the credit of the Federal Government with built-in rent increases and tenant reimbursements for property taxes and insurance.
On behalf of the seller, Avison Young Principals David Duckworth, Mark M. Rubin, Julie A. Johnson, John K. Crotty, Tim Callahan, Michael T. Fay, and Senior Associate Brian de la Fé will oversee the marketing and collective disposition of the following properties comprising the portfolio:
- James A. Haley Veterans’ Hospital, a 117,037-square-foot, state-of-the-art, single-tenant medical office facility at 13515 Lake Terrace Lane in Tampa at the prominent intersection of Interstate 75 and Fletcher Avenue. Built in 2014, the primary care annex provides healthcare services to Veterans in Hillsborough and nearby counties.
William “Bill” Kling VA Clinic, a 107,000-square-foot, build-to-suit, single-tenant medical office building at 9800 W. Commercial Blvd. in Sunrise, just blocks from the Sawgrass Expressway. Affiliated with the Miami VA Healthcare System, the property serves more than 150,000 veterans in Miami-Dade, Broward, and Monroe counties.
“The VA portfolio presents investors the incredible and rare opportunity to acquire assets leased by the largest integrated health system in the U.S.,” said Duckworth. “The buyer will enjoy in-place, reliable, long-term cash flow guaranteed by the Federal Government.”
According to recent market reports, outpatient revenue is driving healthcare growth. Medical office has consistently offered a 2 percent spread in capitalization rate or greater over similar benchmarks for the past five years, causing institutional and foreign investors to eye the investment type as an alternative to lower-yield-producing traditional real estate.
“There continues to be fervent demand for medical office investment due to the uniquely stable occupancy rates and strong price performance experienced by the sector,” said Rubin. “The specialized mission-critical and government credit tenant of the portfolio make it highly desirable, especially considering the markets and patient population the facilities serve.”
Avison Young provides best-in-class services to local, national and international clients while also networking with the firm’s other offices across the U.S. and Canada. For more information about Avison Young or current listings, please contact Mr. Duckworth at (954) 938-1806 or Mr. Rubin at (561) 229-0859 or visit www.avisonyoung.com.
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,600 real estate professionals in 84 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.
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