News Release: Newly acquired MOB in line for major renovations

Seavest Healthcare Properties has boosted occupancy and has commenced significant capital improvement projects at its recently acquired 79,300 square foot Fairfax, Va. medical office building

WHITE PLAINS, N.Y., and FAIRFAX, Va., March 26, 2014 – Real estate investment firm Seavest Healthcare Properties LLC has increased occupancy and is making capital improvements at Fair Oaks Medical Building II on the campus of Inova Fair Oaks Hospital in Fairfax. Located at 3700 Joseph Siewick Drive, the four-story, 79,300 square foot on-campus medical office building (MOB) was acquired by White Plains-based Seavest in 2013 for $21.125 million. The seller was Fair Oaks Medical Plaza LP.

With a history of investing on the Fair Oaks hospital campus, Seavest targeted this medical office building for its portfolio.   “We knew that with a significant capital investment, we could restore this building to a first-class asset worthy of the Inova Fair Oaks campus,” says Seavest CEO Douglas Ray. “The renovations to the lobbies, bathrooms and common areas as well as the upgrades to the building mechanical systems will ensure that the building is up to the standards we set for all of our assets.  These improvements will create a much more pleasant experience for our tenants and their patients.”

Fair Oaks Medical Building II flanks the 182-bed Inova Fair Oaks Hospital and is conveniently adjacent to ample parking in a four-level, 950-space ramp.

Since the closing of the acquisition, Seavest has boosted occupancy from 87 percent to 94 percent with Inova Health Systems occupying 22 percent, or 17,350 square feet. The remainder is leased by physician practices.

The firm has initiated work to improve the MOB’s common areas and mechanical systems. Capital improvements to the building’s systems and interior, including almost $1.0 million in equipment replacement and common area upgrades, are already under way. A new EMS system that monitors all HVAC equipment, replacement of rooftop heating and cooling units, and a new building roof system are slated for installation this month. Interior renovations – including new lighting, flooring and ceiling tiles, new lobby furniture, paint and wall coverings, and updated common area restrooms – are to be completed this spring.

For leasing information at Fair Oaks Medical Building II, please contact Charles Feitel of Health-Pro Realty Group at 301-365-6940 or cfeitel@medicalanddentalspace.com.

About Seavest Healthcare Properties LLC

Seavest Healthcare Properties LLC is a real estate investment management firm focused on the medical office and outpatient facility sector. The firm acquires existing properties, joint ventures with established developers to build new properties, and asset manages medical office buildings, outpatient facilities and similar healthcare real estate assets. A pioneer in this sector, Seavest made its first healthcare real estate investment in the mid-1980s. Today, the firm has a significant portfolio of medical office and outpatient properties which are controlled through dedicated healthcare real estate investment funds. For more information, please visit www.SeavestHCP.com or call 914.683.8474.

About Inova Health System/Inova Fair Oaks Hospital

Inova Health System is a not-for-profit healthcare organization that provides a comprehensive network of hospitals, healthcare facilities and services throughout Northern Virginia. It is one of the largest private healthcare delivery systems in Virginia and the Washington, D.C., metro region. The Inova system includes hospitals, nursing homes, assisted living communities, emergency and urgent care centers, a home health agency, an outpatient surgical/24 hour emergency care facility, and a variety of health and wellness classes for the community.

Inova Fairfax Hospital, its 182-bed flagship facility, is a nationally-recognized community hospital serving the suburbs of western Fairfax and eastern Loudoun counties in Northern Virginia. The not-for-profit hospital offers a full range of medical and surgical services, including cardiac care, obstetrics, orthopedics, pediatrics, emergency and critical care, bariatrics, extensive diagnostic and outpatient services, and outpatient surgery services.