The medical office buildings in Vienna, W.Va., and nearby Belpre, Ohio, are subject to long-term leases with West Virginia University Health System
VIENNA, W.Va.; BELPRE, Ohio; and DALLAS, July 10, 2019 – MedProperties Realty Advisors LLC announced that it has acquired a 92,212 square foot medical office building (MOB) in Vienna, W.Va., and a two-building MOB/ambulatory surgery center (ASC) totaling 20,000 square feet in neighboring Belpre, Ohio, both of which are master-leased to the West Virginia University Health System (“WVU”), an investment grade system. The acquisition closed on May 10.
The Vienna MOB is 100 percent occupied by a number of successful healthcare providers, including the Mid-Ohio Medical Group (MOVMG), DaVita and Mountain States Medical Specialists. Simultaneously with the closing of MedProperties’ acquisition of the MOB, MOVMG was acquired by the WVU.
At the closing of the acquisition by MedProperties, WVU entered into a new, 15-year master lease on both the Vienna and Belpre properties.
Darryl Freling, Managing Principal of MedProperties Realty Advisors, a national healthcare real estate private equity firm headquartered in Dallas, says the Vienna and Belpre properties presented themselves as attractive acquisition opportunities for a number of reasons.
“The acquisitions, which were part of MedProperties’ third discretionary fund, were made on an off-market basis at what we believe to be an attractive purchase price in light of the 15-year master lease with WVU,” Mr. Freling says. “WVU has nine hospitals, 18,000 employees, a high Moody’s investment grade credit rating and an excellent reputation.”
MedProperties’ Director of Acquisitions Jon Foulger adds, “Because this is an off-market transaction with a favorable purchase price, we expect these properties will provide both attractive cash flow returns, as well as material capital appreciation.”
Mr. Foulger also notes that the Belpre ASC, which is a joint venture between a WVU-affiliated hospital and local physicians, is performing well and has had consistently high rent coverage.
The Vienna and Belpre properties are on the West Virginia-Ohio border, just a few miles from Parkersburg, W.Va. The two-story Vienna MOB, located at 800 Grand Central Mall, houses a wide variety of medical services and specialties, including family medicine; orthopedics; ear, nose and throat specialists; dialysis; and imaging. The property was built in 1982, fully renovated in 2009 and expanded by about 32,000 square feet in 2012.
An ASC is the anchor tenant at the two-building, single-story Belpre properties at 610 Washington Blvd. The facilities also offer family medicine, CT examinations and MRI services. The Belpre properties were built in 1960 and renovated in 2007, 2010 and 2012.
The Vienna and Belpre properties are the fifth acquisition in MedProperties’ third discretionary fund, MedProperties Fund III LP. The firm launched the fund last April with the acquisition of a two-building MOB portfolio in Rockville, Md., followed by the acquisition of MOBs in Phoenix; Oaks, Pa.; and Chattanooga, Tenn.
Debt for the acquisition was provided by Capital One.
About MedProperties Realty Advisors
MedProperties Realty Advisors LLC is a Dallas-based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities throughout the U.S. MedProperties invests through its discretionary funds, and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.
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