(Greenbelt, MD) Completing its eighth medical office building acquisition since raising a new real estate fund, Chicago Pacific Founders Healthcare Real Estate (CPF HCRE), a leading healthcare property investor, closed on a twelve-story, 192,000 square foot Class A medical outpatient building in the Washington, DC MSA. The asset was acquired for $27.5 million.
Debt financing was provided by Capital One, NA.
Strategically located at the confluence of major arteries between Washington, DC and Baltimore, the property enjoys 74% occupancy, majority medical tenancy and a weighted-average lease term of six years. Anchored by Luminis Health (A- credit rating) under a new ten-year lease, the property is located 1.2 miles from Luminis Health Doctors Community Medical Center.
“This asset offers the rare combination of not only strong WALT, a health system anchor and great cash flow, but also significant upside in remaining vacancy including a full floor on which we’re negotiating with a national behavioral health tenant identified during due diligence,” said Andrew Eckman, Vice President. “With 300,000 vehicles passing by the property per day, tenants and providers alike appreciate its ease of access and visibility.”
Cliff Berryman, Senior Vice President added, “Through a combination of our favorable debt facility, credits at closing and property cash flow, we will invest in major capital improvements to drive occupancy, rent and the overall tenant/patient experience.”
CPF HCRE has acquired more than $80 million of medical outpatient buildings across four transactions in New York, Florida, Michigan and Maryland in the past 8 months and continues to actively pursue value-add and opportunistic opportunities.
About Chicago Pacific Founders
With $2.7 billion in assets under management, Chicago Pacific Founders is a leading healthcare private equity firm with investments across both healthcare services companies and healthcare real estate.
Contacts
Cliff Berryman
Senior Vice President – Acquisitions
404.358.0786
cberryman@cpfounders.com
Andrew Eckman
Vice President – Acquisitions
703.674.6274
aeckman@cpfounders.com
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