Fairfax Medical Center is located at 10721 Main St. on 3.5 acres across the street from a surgical center owned by Hospital Corporation of America. The 58,000-square-foot property is approximately 84% leased to 28 tenants.
Gyrodyne announced in February that it was acquiring the property. One of the drivers for the deal was its qualification for tax deferral treatment, allowing the company to satisfy within required time limits the $26-million advance payment for property seized by the State of New York under the power of eminent domain. In additions, the $12.89-million purchase price is a $269,000 reduction in the previously announced purchase price.
The company also invested in the asset because it likes the DC area--particularly for this cycle. Gyrodyne has "identified the Metro DC real estate market as one positioned to perform extremely well in the next cycle," according to Peter Pitsiokos, Gyrodyne's COO.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
