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Transactions: Sale near D.C. is a ‘great story’

A Virtus-led partnership acquired the outpatient campus for about $36 million

By John B. Mugford

The three-building former Choice Hotels corporate campus in Silver Spring, Md., which is being repositioned as the Colesville Medical Campus, was recently acquired by a partnership of Virtus Real Estate Capital and Lincoln Property Company. (Photo courtesy of JLL)

The recent sale of the Colesville Medical Campus in suburban Washington, D.C., represents a “great story” in the medical office building (MOB) acquisitions sector, according to the broker who led a team representing the seller.

The broker, Ben Appel, a managing director with the Healthcare Capital Markets Group of Jones Lang LaSalle Inc. (NYSE: JLL), tells HREI that the three-building, 212,153 square foot campus just a mile or so north of the U.S. Interstate 495 Capital Beltway in Silver Spring, Md., was, for the most part, vacant just six years ago.

That’s when Choice Hotels International Inc. (NYSE: CHH), for which the corporate campus was purpose-built in the mid-1980s, left for a new location. Since then, the campus has been transitioning to medical, with the first tenant being locally based Holy Cross Health System, which signed a full-building lease in 2014 for one of the facilities, 10720 Columbia Pike.

Since then, the occupancy has risen to more than 82 percent.

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