For Immediate Release
Sale marks the completion of a three-year value-add project at the former office building
Bridgewater, N.J. (December 16, 2020) – Joint venture partners Atkins Companies and Capital Solutions announce the sale of their Bridgewater Medical Building, a 95,000-square-foot, Class-A medical office building and ambulatory surgery center located at 1125 Route 22 West in Bridgewater, N.J., to a joint venture partnership between Anchor Health Properties and the Carlyle Group. Newmark Executive Managing Director Ben Appel handled sale advisory services for the transaction; Senior Managing Director Jay Miele and Managing Directors John Nero and Michael Greeley worked in cooperation with Appel.
Formerly serving as a regional headquarters for Bank of America, 1125 Route 22 West was acquired by Atkins Companies and Capital Solutions as a value-add project in 2017. At the time of the acquisition, the building was fully leased to two tenants: Bank of America and MidJersey Health Corporation, a joint venture between two of the region’s largest healthcare networks, Hunterdon Healthcare and Atlantic Health System. Atkins Companies and Capital Solutions recognized that Bank of America’s departure from its 37,030-square-foot space at the expiration of their lease would create an opportunity to reposition the entire property as a modern, full-service regional healthcare hub.
Shortly after Bank of America’s departure, Atkins Companies tapped its healthcare relationships to begin negotiations with Atlantic Health System to lease the bank’s former space. Late in 2019, Atkins Companies finalized the lease that would see Atlantic Health System occupy the entire 37,030-square-foot space vacated by Bank of America. Simultaneously, Atlantic Health and Hunterdon expanded their relationship at the property, through a joint venture partnership in the four-room ambulatory surgery center, imaging center and physical therapy located on the western side of the building. Following the commitment from Atlantic Health System, Atkins Companies and Capital Solutions began a comprehensive capital improvement plan to reimagine the existing design in the former Bank of America suite to tailor the space to suit the needs of Atlantic Health System.
To bring the building up to Class-A medical office standards, improvements included closing in the existing drive-thru banking underpass to seamlessly integrate the structure, various exterior site improvements including constructing two new entrances with canopies and drive-up/drop-offs, and a total interior renovation creating state-of-the-art medical suites. Upon completion, Atlantic Health plans to house various sub-specialty practices, including but not limited to, orthopedics, oncology and OBGYN. Completion of Atlantic Health’s entire buildout and full occupancy is scheduled to take place in Q1 2021.
Now fully leased to two of the region’s fastest-growing healthcare systems, the sale of the medical office building marks the successful culmination of Atkins Companies and Capital Solutions’ value-add project at the building.
“We continue to see tremendous unmet demand from growing healthcare networks like Atlantic Health System and Hunterdon Healthcare for Class-A medical office space in the northern and central New Jersey markets,” said Cory Atkins, Vice President and Director of Acquisitions of Atkins Companies. “In a market where ground-up development can often be difficult, we knew that this property presented an ideal opportunity to create one of the finest medical office properties in the region. This sale highlights our success in bringing our vision to life and we are deeply proud of the work we have done to create a space that will allow these healthcare systems to expand their services into our local community for years to come.”
Appel noted, “Following the repositioning of the property by Atkins and Capital Solutions, ownership built upon the existing lease with Hunterdon Healthcare to sign a new long-term lease to Atlantic Health System. Through their commitment to the building, the health systems provide aligned and coordinated care across numerous specialties and subspecialties, including a full-floor ambulatory surgery center and full-floor imaging center. This tenant make-up attracted capital profiles both public and private, domestic and abroad.”
“It was a seamless, efficient process working with Atkins Companies and Capital Solutions. They were upfront and transparent throughout the duration of the transaction,” said James Schmid, Chief Investment Officer and Managing Partner with Anchor Health Properties. “The company’s deal experience also showed as they were able to effectively and quickly find solutions to items that other sellers may have not been able to.”
To stay connected with Atkins Companies and for updates on the latest transactions and news, follow Atkins on LinkedIn (www.linkedin.com/company/atkins-companies).
About Atkins Companies
Atkins Companies is one of the Northeast’s premier, multigenerational commercial real estate developers, investors, and property managers. As a pioneer in the medical office space, Atkins Companies is a leading developer, investor, and property manager for regional healthcare systems and physician practices, providing state-of-the-art space solutions to meet the growing demand for well-located, Class-A medical office buildings. Driven by a deep focus on creating and maintaining strong relationships, their hands-on and solutions-oriented approach to development, investment, and management breeds successful projects across all asset classes while enhancing the businesses and communities that they serve. For more information about Atkins Companies, visit AtkinsCompanies.com or contact them in their West Orange office at 973-325-7900.
About Capital Solutions
Capital Solutions is a real estate investment and private equity firm founded by Frank Seidman in 1991. The Capital Solutions investment team consists of experienced professionals with strong backgrounds in real estate acquisitions, dispositions, finance, equity funding, redevelopment, asset management, structured finance and capital markets. Capital Solutions invests alongside quality operating partner across the U.S. and Canada with a focus on medical office, multifamily, student housing, senior living, and net lease opportunity within its real estate portfolio.
About Anchor Health Properties
Anchor Health Properties is a national, full-service healthcare real estate development, management, leasing, and investment serving investors and health systems. Anchor takes a strategic approach to navigating the extremely competitive healthcare marketplace, considering multiple angles, such as retail drivers, customer experience, branding and efficiency of the project. We develop and manage projects across the United States that respond to the new landscape of employed physicians, team-based care, the need to optimize assets and reduce duplication, and the integration of care and technology. Anchor manages and leases more than six million square feet of medical office space, inclusive of numerous projects under construction. Anchor maintains multiple offices nationwide and features more than 75 professionals in its ranks. Over the past five years, Anchor principals have acquired and/or developed more than $3 billion of medical real estate across the country. Healthcare today calls not only for new and more efficient ways of delivering outpatient services, but also a different kind of healthcare development and management company. For more information, please visit: www.anchorhealthproperties.com.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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