$12.25 Million Veteran’s Affairs Medical Office Property Sold by Marcus & Millichap
Marcus & Millichap announced the sale of the Baltimore VA Annex. (Photo courtesy of Marcus & Millichap)
BALTIMORE, Dec. 29, 2016 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of the Baltimore VA Annex, a 74,000-square-foot medical office fully leased to the Department of Veteran’s Affairs (VA). The $12.25 million sales price equates to nearly $180 per square foot.
“This transaction demonstrates investors’ continued interest in the Baltimore market, which is a premier hub for healthcare real estate due to anchor institutions like Johns Hopkins and the University of Maryland Medical Center.” says John Smelter, a senior director of Marcus & Millichap’s Healthcare Real Estate Group.
“Baltimore is experiencing a wave of historic property conversions,” notes Chris Beck, an associate in Marcus & Millichap’s Baltimore office. “The historic nature of this building was critical to the VA’s selection of the property, as the administration prefers historic buildings.”
“Marcus & Millichap’s collaborative platform and vast network of national investors provided access to both buyers and brokers nationwide, which led to marketing in cities from Boston to Seattle to locate the investor, a first-time buyer in the Baltimore market,” adds Robert Filley, a Marcus & Millichap senior associate in the firm’s Washington, D.C. office.
“The transaction presented challenges due to the fact that shortly after we began marketing the property, the VA decided to expand the premises,” explains Ryan Gonzales, an associate with Marcus & Millichap’s Healthcare Real Estate Group in the firm’s San Diego office. “By the time the expansion negotiation was complete, the VA had less than five years remaining on its lease, which made it more challenging to market the property. Working closely with the buyer, we were able to demonstrate to this first-time investor of GSA properties the VA’s commitment to the location.”
Built in 1920, the property is three blocks from the 137-bed Baltimore VA Medical Center. The building serves to augment the clinical, research and administrative programs at the nearby medical center and has been fully leased to the VA since 2010, and. The VA recently extended their lease by five years and expanded the facility by 6,800 square feet. The VA has invested upwards of $4 million in building and tenant improvements.
Smelter, Gonzales, Filley and Beck represented the seller, a regional investor with a diverse group of assets. Bryn Merrey, senior vice president and division manager is Marcus & Millichap’s broker of record in Maryland.
About Marcus & Millichap (NYSE: MMI)
With over 1,600 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com
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