BROOKLYN-Brooklyn has become a hot place to live, work and be entertained. And within Brooklyn, there is perhaps no place hotter than an area near the burgeoning Atlantic Yards mixed-use development.

There, just off what is considered Brooklyn's downtown, New York-based Forest City Ratner Cos. is in the midst of developing a $4.9 billion, 15-building project on 22 acres that could eventually have more than 6 million square feet of space. Planned to be built over the course of the next several years are 6,430 residences, 247,000 square feet of retail stores, 336,000 square feet of offices and other uses.

Across the street from the hub of the development – the upgraded Atlantic Terminal – and just a block from the first building completed in the mixed-use project, the Barclays Center sports arena, sits one of the more unique medical office space investment opportunities in the country.

Inside the 34-story One Hanson Place are 16 medical office condominiums, nine of which were recently put on the sales block as one investment package by New York-based Noyack Medical Partners LLC. The asking price is $7.9 million for the 12,396 square feet of space, which is 100% occupied by medical tenants that include dentists, oral surgeons, a urologist and pediatric physicians. The capitalization rate of the offering is slightly above 8% and the average remaining lease term for the tenants is five years.

As an indication of how different the medical office market is in New York City compared to the rest of the country, the suggested price per square foot for the offering is $643.35. According to real estate research firm Real Capital Analytics Inc., the average price per square foot for medical office buildings that sold during 2012 was $226.

Even so, that price is not out of line in the tight confines of New York, according to CJ Follini, founder and CEO of Noyack, who calls the offering price “on the low end; it's priced to move.” He expects the property to be attractive to private investors, including high-net worth individuals and family offices.

As noted, the condos are located inside the iconic, 34-story One Hanson Place, which was completed in 1927 as the Williamsburg Savings Bank Tower. In recent years, the building has undergone a renovation and is now home to 200 residential condominiums, the 16 medical office suites, and a retail space. Noyack plans to hold on to remainder of the condos that are not part of the package, offering them separately to users.

In addition to being adjacent to Atlantic Yards, One Hanson Place is just a couple of blocks from the 312-bed Brooklyn Hospital Center, which is affiliated with the New York-Presbyterian Healthcare System. Follini adds that available medical office space in the area is scarce.

According to Noyack, the area surrounding One Hanson Place, on the edge of downtown and next to the Atlantic Yards project, is a “very under-served market which is set to explode in population even further in the coming years.”

John Mugford is the Editor of Healthcare Real Estate Insights™, the nation's first and only publication totally dedicated to covering news and trends in healthcare real estate development, financing and investment. For more information, please visit www.HREInsights.com.