ATLANTA (December 16, 2015) – Chicago-based healthcare real estate investment company Stage Equity Partners LLC (“Stage”) announced the recent acquisition of Stonecrest Medical Office Building, a 31,000 square foot, hospital sponsored, Class A medical office building in Lithonia, Georgia, an eastern suburb of Atlanta. Stage Principals Brian Howard and Russell Brenner announced that this purchase marks Stage’s third acquisition in Atlanta continuing its expansion in the Southeast.
According to Stage Principal Brian Howard, the two-story, multi-tenant building was acquired in an off-market transaction from a private investment group for $6 million. The property is anchored by DeKalb Regional Health System, a longstanding and prominent three-hospital system in Atlanta, pursuant to a long-term lease. MB Financial Bank provided acquisition financing for the project.
The property, at 8225 Mall Parkway, Lithonia, Georgia, is located across the street from The Mall at Stonecrest, a 1.3 million square foot super-regional shopping center. DeKalb occupies approximately 60% of the building with its top orthopedic and primary care practices, both of which have recently expanded within the building. The building is also leased to leading internal medicine, foot and ankle, ophthalmology and dental practices. The property is located within 10 minutes of both DeKalb Hillendale Hospital and Rockdale Regional Hospital for those patients requiring acute procedures and overnight stays.
“This building hits on the positive attributes we look for in a new acquisition,” notes Stage Principal Brian Howard. “The building is newly constructed, sponsored by a leading healthcare system in a densely populated, well-insured area on a retail corridor. The building also provides top credit tenants with long-term leases, along with a value-add component. Until the recent breakup of a pediatric practice, the building was 100% occupied. We anticipate good demand for the lease up of the remaining space in the building, and are excited to operate the building with our high-touch, hands-on property management.”
According to Stage Principal Russell Brenner, “Stage is extremely excited to partner with the DeKalb system. We pride ourselves on providing a first class experience for both tenants and patients alike in our building. We are excited about the long term growth prospects for the practices at the building and the opportunity to grow our relationship with DeKalb.” Brenner adds that Stage intends some minor cosmetic enhancements at the building, such as improvements to the lobby and corridors.
About Stage Equity Partners
Stage Equity Partners LLC (www.stageequity.com) is a privately held, healthcare real estate investment company headquartered in Chicago (Skokie, Ill). Stage acquires, develops and manages medical office buildings, both on its own and for its investor partners, in top markets around the U.S. Its current portfolio contains assets in six states with an aggregate value of over $125 million. Stage targets acquisitions in the $5 million to $25 million range, with locations in strong, established demographic areas in close proximity to dominant hospital systems or other significant demand drivers.
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