Children’s National Now Owner of 60,000-Square-Foot Medical Facility and Underlying Real Estate in Glenarden
WASHINGTON, DC. (Sept. 11, 2020) – Heritage Partners, a national full-service real estate development firm with a strong focus in the Mid-Atlantic markets, announced today the sale of Children’s National Prince George’s County at Woodmore Towne Centre in Glenarden, Maryland to Municipal Acquisitions, using a proprietary structure that allows Children’s National to transition from a leasing arrangement to ownership of both the newly constructed building and its underlying real estate. The sale price is $39.3 million.
“This was a tri-party transaction that brought all three groups together in a unique collaboration resulting a triple win,” said Terry Richardson, Heritage Partners CEO.
Children’s opened their new 60,000 square foot facility pursuant to a triple net lease in July of this year. An affiliate of Heritage Partners was both developer and landlord for the project.
“Children’s National Prince George’s County has brought families in the region greater access to a broad range of pediatric services, and we’re pleased to now be the landowner of this facility,” said Charles Weinstein, executive vice president & chief real estate officer for Children’s National Hospital.
The regional outpatient facility is a build-to-suit three-story building with approximately 60,000 gross square feet that houses a pediatric ambulatory surgery center and includes space for pediatric medical offices. Children’s National Prince George’s County is the largest regional outpatient facility in the health system’s portfolio. Municipal Acquisitions restructured the original lease with Children’s National, providing substantial economic benefits, including eventual lien-free ownership and lower overall occupancy costs.
The acquisition was financed through the issuance of tax exempt and taxable bonds.
“Our team at Municipal Acquisitions is pleased to have the opportunity to create this structure to provide Children’s National with flexibility and value in the ownership of the property and the land on which it is located,” added Municipal Acquisitions CEO Jon Kling.
The deal was brokered by Jonathan Hipp of Avison Young.
About Heritage Partners
Heritage Partners, a full-service national real estate development firm with a strong focus in the Mid-Atlantic markets, works with institutional investors to build and manage neighborhood shopping centers, government and medical office, net-leased single-tenant pads. Backed by solid data, and nimble with respect to asset types, the firm also provides institutional quality contracted property management and third-party leasing services. For further information, please visit https://www.hp-llc.com/.
About Children’s National Hospital
Children’s National Hospital, based in Washington, D.C., celebrates 150 years of pediatric care, research and commitment to community. Volunteers opened the hospital in 1870 with 12 beds for children displaced after the Civil War. Today, 150 years stronger, it is among the nation’s top 10 children’s hospitals. It is ranked No. 1 for newborn care for the fourth straight year and ranked in all specialties evaluated by U.S. News & World Report. Children’s National is transforming pediatric medicine for all children. In 2020, construction will be complete on the Children’s National Research & Innovation Campus, the first in the nation dedicated to pediatric research. Children’s National has been designated twice as a Magnet® hospital, demonstrating the highest standards of nursing and patient care delivery. This pediatric academic health system offers expert care through a convenient, community-based primary care network and specialty outpatient centers in the D.C., metropolitan area, including the Maryland and Northern Virginia suburbs. Children’s National is home to the Children’s National Research Institute and Sheikh Zayed Institute for Pediatric Surgical Innovation and is the nation’s seventh-highest NIH-funded children’s hospital. It is recognized for its expertise and innovation in pediatric care and as a strong voice for children through advocacy at the local, regional and national levels. For more information, follow us on Facebook, Instagram and Twitter.
About Municipal Acquisitions
Municipal Acquisitions is a Washington DC-based real estate investment firm with a portfolio of approximately $450 million. Municipal Acquisitions is focused on real estate opportunities with not-for-profit health systems, institutions of higher learning, and state/local governments throughout the United States. For further information, please visit https://www.macqcapital.com/.
Julie Chase | President & CEO
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