Physician Group Buys 100,000-SF Medical Office
There were some challenges to the deal starting with a landlord reluctant to sell.
ROCKVILLE, MD–CDC Realty, LLC, a group of physicians and other investors closed on 100,000-square feet of medical office space in Montgomery County’s Life Sciences Corridor in a deal that presented some challenges.
One of the largest private gastroenterology practices in the country, Capital Digestive Care wanted to integrate several separate medical offices. “Entering the real estate market was an important strategic objective for our group,” said Dr. Michael Weinstein, CEO of Capital Digestive Care, in a prepared statement. “This acquisition favorably positions providers of medical services in a high-traffic corridor with a large medical presence.”
Adam Schindler, EVP of Colliers International Washington DC office, represented CDC Realty in the purchase, which included two properties located at 15001 and 15005 Shady Grove Road.
Initially, according to Colliers, the property owner was hesitant to relinquish ownership. Other complications arose because the existing tenants faced multiple lease expirations.
The purchase of the property also included a 35,000-square foot master lease.
The group tapped the Charlottesville, VA-based Anchor Health Properties as a developer for the properties. Anchor manages and leases nearly four million square feet of medical office space, including several projects under construction. Last month it formed a joint venture with a Morgan Stanley Real Estate Investing advised fund to acquire three medical office buildings on the East Coast: two on the campus of Doylestown Hospital in suburban Philadelphia totaling nearly 150,000 square feet and a 100,000 square foot medical office building in Matthews, NC, which sits next to Novant Health’s Matthews Hospital campus.