ATLANTA—Stonemont Financial Group, a private real estate investment firm specializing in industrial development, acquisitions, net lease investments, and healthcare announced today that it has acquired an 85,000-square-foot medical office building in Alpharetta, Ga., near Atlanta. The deal represents a strategic move by the firm to grow its healthcare platform nationwide amid record demand and strong market fundamentals within the MOB asset class.

Preston Ridge Medical Office Building sits on Preston Ridge Road off of Old Milton Parkway, adjacent to Northside Hospital’s Alpharetta campus. Northside Hospital is the anchor tenant of the Class A building, where it provides cancer care services to the Alpharetta community.  The property also houses three single specialty surgery centers and a synergistic mix of tenants offering a range of medical services including plastic surgery, dermatology, ENT and gastroenterology. The property offers high visibility from Old Milton Parkway and GA-400 and is in close proximity to Avalon shopping center.

“Medical office properties have demonstrated strong market fundamentals despite some of the recent economic headwinds, and we are pleased to grow our portfolio with this first-rate asset in one of Metro Atlanta’s top performing submarkets,” said Stonemont Senior Vice President Matt Stone. “This move signifies the start of a strong partnership with Northside Hospital, and we view this acquisition as a strategic, long-term investment given the building’s proximity to top healthcare providers and a substantial patient base that will continue to grow in the years to come. We look forward to launching our strategic capital improvement plan at the property in early 2023 and are excited to grow our footprint within our home base of Atlanta.”

Stonemont plans to implement a significant capital improvement program at the property. The aim is to bring the building back to top-of-market quality and to allow Northside Hospital and other medical providers to continue expanding in the market and sustain long-term growth in Alpharetta. The acquisition reflects Stonemont’s broader strategy of building a national healthcare portfolio as the firm continues to diversify into other asset classes.

Preston Ridge Medical Office Building sits just a quarter mile from Avalon, one of the Southeast’s premier mixed-use destinations. The development has over 570,000 square feet of retail, several high-class dining establishments and a 47,000-square-foot convention center on-site.

According to a recent report from Colliers, MOB rents are now at an all-time high of $22.61 per square foot, with net absorption across the top 100 markets totaling more than 19 million square feet. Total investment rose by a staggering $5.5 billion from 2020 to ‘21, with private investors accounting for two-thirds of total sales volume. According to Yardi, medical office properties now account for approximately 10% of total office stock and have emerged as an investor favorite in the wake of the pandemic.

The post Stonemont Financial Group Acquires Georgia MOB appeared first on HCO News.

BLOOMINGDALE, Ill.—In a first for Northwestern Medicine, the renovation of a medical office building (MOB) in Bloomingdale, features prefabricated modular exam rooms. More than 70 exam rooms are being built as pods off-site in an assembly-line fashion and delivered nearly complete to the medical office building construction site, where they are slid into place for final connections.

The project is a complete renovation of over 50,000 square feet in an existing building at 231-235 S. Gary Avenue. The space will house a Northwestern Medicine Immediate Care, Physical Therapy and Diagnostic Imaging; as well as Northwestern Medicine Regional Medical Group specialties, including Primary Care, Cardiology, Endocrinology, Orthopedics and Gastroenterology. Cannon Design is the architect of record. Walsh Construction is the General Contractor.

The 70+ exam rooms are being mass produced in an assembly line at the Hill Mechanical shop in Franklin Park, Illinois, in conjunction with Walsh Construction. The pods are 95% completed at the off-site shop with drywall, insulation, ceiling tiles, cabinets, sinks, electrical wiring and plumbing. Nearly all the finishing touches are completed as well, including tile, paint, wallcovering, and millwork. Computer arms, blood pressure monitoring equipment, Sharps needle containers, and coat hooks are attached to the walls before delivery.

“The main advantage of modular pod construction is a more advantageous speed-to-market solution for project delivery, as well as the efficiency, safety and quality control of building in a controlled environment compared to a traditional construction setting,” said Dan Callaghan, CE, MBA, project manager, Planning & Construction, Northwestern Medicine.

The pods are delivered to the Bloomingdale building three at a time on a flat-bed truck, where a crane lifts them onto a loading dock. The pods are pushed into place using industrial dollies, and all electrical, plumbing and vents are connected. Once all are in place, exterior drywall and flooring is completed, along with a few final touches such as hanging doors.

The building of the modular units is happening at the same time as the on-site development work, which also speeds up the construction process. Callaghan estimates the project will be finished approximately four weeks faster compared to traditional construction, and if it wasn’t a phased project due to the need to continue offering medical services on the site during construction, the modular pods would have saved substantially more time.

While prefabricated modular units are more common in the hospitality industry, Northwestern Medicine Director of Planning & Construction Charles Cloutier says the process is gaining traction in the healthcare industry. One reason is the ability to standardize all the exam rooms.

“It is very helpful for medical providers to be able to walk into any exam room and know exactly where everything is, and what to expect,” said Cloutier. “Standardization also helps significantly with flexibility allowing different specialties to use the same exam rooms depending on volume, which makes our real estate footprints more efficient.”

Phase one construction of the Bloomingdale Medical Office Building project will be completed in March of 2021 with the new Immediate Care opening. Phase two construction will be completed in October 2021, with the remainder of the building taking occupancy.

The post Prefab Exam Rooms Speed Up Illinois MOB Project appeared first on HCO News.

MURFREESBORO, Tenn.—Nashville-based healthcare real estate development firm Oman-Gibson Associates (OGA) has broken ground on a new ambulatory surgery center (ASC) and medical office building (MOB) in the city of Murfreesboro, located 30 miles southeast of Tennessee’s capital city. OGA is developing the ASC in concert with United Surgical Partners International (USPI), whose home offices are in Dallas.

The healthcare construction project, which will be sited adjacent to the existing Ascension/St. Thomas medical facility, will entail nearly 30,000 square feet of medical use space. Over 14,000 square feet alone will be set aside for the ASC itself. The ASC will host a procedure room and two operating rooms, and space for future expansion is included. The remaining square footage at the new facility will be utilized primarily for office space.

The facility will be located at 2755 New Salem Highway in Murfreesboro. Working with OGA on the design and execution of the construction of the project are architect Environments for Healthcare Architecture and general contractor Batten & Shaw.

OGA has previously constructed other healthcare projects in various areas of Middle Tennessee, including Brentwood, Gallatin and Hendersonville. And in Nashville itself, the firm has also redesigned a former bowling alley to be used as a dialysis center. It’s all part of the company’s plan to increase healthcare availability to residents of this part of the Volunteer State.

“OGA is happy to continue partnering with USPI on projects that bring more medical facilities to the Middle Tennessee region and nationwide,” Sam Sarbacker, a vice president with OGA, said in a statement emailed to HCO News.

In another recent statement, OGA Chief Executive Officer Bond Oman echoed Sarbacker’s enthusiasm for working with USPI on healthcare construction projects.

“Aside from creating a modern environment that allows our partners to deliver outstanding care to their patients, this facility adds to the quality of the community by providing an outpatient center a short distance from home,” Oman said.

The projected completion date for construction of the new facility is next June.

On its website, USPI says that it is the country’s largest “ambulatory surgery platform.” The company employs nearly 20,000 people. In the Nashville area alone, the healthcare operator boasts to its portfolio the Baptist Ambulatory Surgery Center, the Eye Surgery Center of Nashville, Nashville EndoSurgery Center, Saint Thomas Surgicare, St. Thomas Hospital for Specialty Surgery and St. Thomas Surgery Center – Midtown.

Meanwhile, OGA helps clients with project management, development and consultations on leasing arrangements. In the healthcare sector alone, the business has accomplished $100 million of an annual development, entailing 500 sites in over 35 states.

The post Tennessee Breaks Ground on Ambulatory Surgery Center appeared first on HCO News.

COLUMBIA, S.C.—Healthcare real estate player Flagship Healthcare Properties, based in Charlotte, N.C., is expanding its holdings in its southern neighbor with the acquisition of a Class A medical office building and ambulatory surgery center in Columbia, South Carolina’s capital.

The 31,697-square-foot MOB, which was first constructed in 2007, is already pre-leased to healthcare providers such as Columbia Nephrology, a kidney specialty practice that has served the region since coming online in 1980.  Additional tenants will include Fresenius Medical Care and Fresenius Vascular Care, which offer dialysis services for patients experiencing renal failure as well as outpatient vascular access.

The MOB sits on the campus of the Park Central Medical Office Park and is also near to the Prisma Health Richland Hospital campus, which is the most advanced healthcare facility in South Carolina’s Midlands region.

Gerald Quattlebaum, executive vice president of acquisitions with Flagship, said that the purchase of the Class A medical facility is the second such purchase for the company in the Columbia area in the past 12 months.

“The property’s location in a medical park with close proximity to Prisma Health Richland Hospital makes this a highly desirable healthcare destination,” Quattlebaum said.  “Anchored by one of the state’s largest nephrology practices, along with one of the nation’s largest providers of dialysis services, this property serves patients both near and far in need of this specialized level of care.”

Flagship, as the new owner, will provide both property management and asset management services for the Class A medical facility.

Flagship bought the MOB in Columbia via its investment subdivision, which is called Flagship Healthcare Trust.

The post Flagship Obtains Columbia MOB appeared first on HCO News.

MONTGOMERY & PRATTVILLE, Ala.—The healthcare real estate company Flagship Healthcare Properties has added to its portfolio in the Yellowhammer State, with the recent acquisition of one medical building in Prattville and another in the capital city of Montgomery.

Between the two medical office buildings (MOB), the combined space will offer 10 operating suites, three procedure rooms, four X-ray rooms, eight exam rooms as well as a pathology lab.

Flagship announced that it will continue to host the buildings’ former owners, Oral & Maxillofacial Surgery Associates (OMSA), under long-term leases at both sites.

“We couldn’t be happier to partner with this dynamic group of physicians and expand our presence in Alabama,” Gerald Quattlebaum, executive vice president of acquisitions for Flagship, said in a recent statement about the purchases.  “These physicians represent best-in-class and are the dominant, market leaders in the capital city.”

Flagship’s subsidiary, Flagship Healthcare Trust, Inc., served as the purchasing entity for the MOBs.  The deal itself was brokered by Josh Randolph of Colliers International of Birmingham, and was financed by United Bank.

OMSA has been a player in the healthcare market of Alabama for three decades.  The company estimates that they provide 70 percent of all healthcare in the greater Montgomery area.

Flagship, headquartered in Charlotte, owns and manages many healthcare properties throughout the Southeast encompassing over 4 million square feet of healthcare space at 165 properties.

“We look forward to supporting Oral & Maxillofacial Surgery Associates as they continue to grow to meet the needs of the patients in the greater Montgomery area,” Quattlebaum said.

The post Flagship Purchases Pair of Alabama Medical Buildings appeared first on HCO News.

HUNTERSVILLE, N.C.—Healthcare real estate development firm Flagship Healthcare Properties has added to its portfolio in the Charlotte region with its recent purchase of Huntersville Medical Plaza, a two-story, 26,166-square-foot outpatient medical office building (MOB) located in the suburb of Huntersville.

The MOB, a Class A facility, was first constructed in 2009 in an area known as Lake Norman.  Its location at 17220 Northcross Drive allows for easy access to Interstate 77, and it is located near the large Birkdale Village apartment complex.

In addition to the building itself, Flagship will inherit the Huntersville Medical Plaza’s major tenant, Novant Health Huntersville Pediatrics & Internal Medicine, which already occupies the entire first floor of the MOB, utilizing 13,000 square feet of healthcare space therein.  Novant Health’s offered services at the MOB include geriatric care as well as neonatal facilities.

In a statement regarding the buy, Flagship’s executive vice president of acquisitions, Gerald Quattlebaum, said that his company will work with Novant, as well as other prospective tenants, on making use of “the advantages of this well-located MOB in this dynamic part of the Charlotte market.”

“We are excited to expand our Charlotte area presence into the rapidly growing Lake Norman submarket and look forward to continuing our partnership with Novant Health,” Quattlebaum said.

In addition to being the new owners, Quattlebaum’s firm will perform asset management and property management.

Flagship bought the Huntersville Medical Plaza through its real estate investment arm, which is called Flagship Healthcare Trust, Inc.  The deal was brokered by CBRE’s Institutional Properties Group, and was financed by the Atlantic Union Bank’s Charlotte branch.

Flagship, which is based in Charlotte, has bought several medical properties recently in North Carolina’s largest city.  Earlier this summer they also acquired a MOB in the Charlotte suburb of Hickory as well as the nearby Tate Medical Commons IV medical complex.

The firm currently manages over 4 million square feet of healthcare real estate space at 165 properties.

The post Flagship Obtains Medical Plaza in Huntersville appeared first on HCO News.

HICKORY, N.C.—Medical real estate firm Flagship Healthcare Properties has further expanded its portfolio in the greater Charlotte area with the purchase of the 55,912-square-foot Tate Medical Commons IV medical office building, located in the town of Hickory, about 50 miles from downtown Charlotte.

The MOB, constructed in 2004, has as its main tenant Catawba Valley Medical Center (CVMC), the largest nonprofit community hospital in the Charlotte area. The CVMC’s healthcare facilities include a full suite of diagnostic imaging services, hyperbaric chamber, as well as a lab for the study of sleep disorders. Furthemore, the facility also hosts the Catawba Women’s Center, which offers the full spectrum of OB-GYN services. The center has operated in western North Carolina in some fashion since 1972.

In a recent statement about the purchase, Gerald Quattlebaum, executive vice president of acquisitions at Flagship, said that Tate IV MOB is the fifth such addition to his firm’s portfolio in seven months.

“Hickory sits in a strategic position serving the healthcare needs of this region, and there is a lot to like about this healthcare community, both from a provider, patient population and demographic standpoint,” Quattlebaum said.

Flagship purchased the Hickory site via its investment division, which is called Flagship Healthcare Trust, Inc. As the new owner, Flagship will be providing asset management and property management.

The deal was financed by First Horizon Bank.

“This facility is a critical healthcare destination for patients seeking hospital outpatient services as well as a synergistic blend of physician specialties,” Quattlebaum said.

The post Flagship Continues to Expand Charlotte Presence appeared first on HCO News.

HICKORY, N.C.—Healthcare real estate player Flagship Healthcare Properties has extended its holdings in the Tarheel State with yet another acquisition, this time three medical office buildings (MOB) totaling nearly 90,000 square feet of medical use space.  The property is located in Hickory, which is about 60 miles north of downtown Charlotte, where Flagship’s operations are based.

Flagship purchased the trio of MOBs through its subsidiary, Flagship Healthcare Trust, which is the company’s private real estate investment arm.  Flagship will provide property management and asset management services as the buildings’ brand-new owner.

The trio of MOBs currently has an overall occupancy of 96 percent, Flagship announced, with such long-standing tenants including the Veteran’s Administration Hickory Outpatient Clinic, which caters to the primary and specialized care for veterans in the area.  Other tenants at the MOBs include A Woman’s View, whose specialties include obstetrics and gynecology, as well as laboratory services.  Among the other healthcare tenants are the offices of Frye Regional Medical Center, which is owned by Duke LifePoint Healthcare.  Frye’s offices at the MOB in Hickory provide patient care in subspecialties such as behavioral health, internal medicine and pulmonary services.

In a statement regarding the acquisition, Gerald Quattlebaum, executive vice president of acquisitions at Flagship, said that his firm is thrilled to be increasing its share of the healthcare sector in the firm’s “home market” of the greater Charlotte region.

“Hickory has a strong healthcare market that serves a sizable population in the northwest area of North Carolina,” Quattlebaum said.  “These medical office properties are ideally situated in close proximity to important hospital services and surrounding patient populations.”

Financing for the deal was made possible by First Horizon Bank.

Flagship’s private real estate investment trust, Flagship Healthcare Trust, Inc., maintains ownership of 1.6 million square feet of healthcare assets at over 60 properties, with a collective value of some $450 million, the firm announced.  Other properties the firm has recently acquired in North Carolina include an ambulatory surgery center, also in Hickory, as well as a surgery center in Charlotte.

The post Flagship Expands North Carolina Presence appeared first on HCO News.

LEXINGTON, Ky.—Healthcare real estate development firm Flagship Healthcare Properties has purchased a 44,290-square-foot Class A medical office building (MOB), located at 1775 Alysheba Way in the university town of Lexington, Kentucky. As part of the transaction, Flagship has announced that the MOB will be jointly leased by the Lexington offices of Baptist Healthcare and Family Practice Associates.

Family Practice Associates of Lexington is occupying 18,000 square feet of the MOB, or approximately 47 percent of the available healthcare space in the building. Baptist Healthcare of Lexington is leasing out the remaining 26,290 square feet of space, which it will utilize as outpatient care space for the nearby Baptist Health Lexington hospital.

The MOB facility was initially constructed in 2004 and is located in Lexington’s Hamburg neighborhood, sited just a mile from Interstate 75.

Flagship, based in Charlotte, N.C., acquired the MOB in Lexington via its subsidiary real estate investment trust, called Flagship Healthcare Trust. First Horizon Bank provided financial backing for the sale, with Mark Rubin of Rubin Properties acting on the seller’s behalf.

“We really like the Lexington market and are happy to be able to expand our presence here,” said Gerald Quattlebaum, senior vice president of acquisitions for Flagship, regarding his firm’s purchase of the property at 1775 Alysheba Way. “We are fortunate to have been selected by Family Practice Associates for this transaction, and we look forward to working closely with them and Baptist Healthcare of Lexington as they continue to grow and meet their patients’ needs.”

Flagship manages over 4 million square feet of healthcare real estate at over 155 properties, and the company has also bought some 80 properties with a collective value of $675 million. Through its Flagship Healthcare Trust subsidiary, the company maintains an active interest in $400 million of healthcare real estate properties around the country.

Lexington, home to the University of Kentucky, is located 25 miles east of the state capital of Frankfort and 80 miles east of Louisville, where the annual Kentucky Derby takes place at the racetrack of Churchill Downs.

The post Flagship Adds Kentucky MOB to Portfolio appeared first on HCO News.