Caddis Healthcare Buys Medical Pavilion Property in Maryland
For the past four years, BREG invested in substantial capital improvements and implemented an active management plan to convert the property from standard office zoning to its current medical office status.
ROCKVILLE, MD—Denver-based Broe Real Estate Group has sold the Shady Grove Medical Pavilion here to Caddis Healthcare Real Estate of Dallas, TX.
The 121,789-square-foot medical pavilion constructed in 2000 is located at 9601 Blackwell Road in Rockville. No terms of the transaction were released. Shady Grove Medical Pavilion is located adjacent to both the Adventist Healthcare Shady Grove Medical Center and the Johns Hopkins University Montgomery County Campus.
Shady Grove Medical Pavilion was acquired by BREG in a 2014 auction as a distressed asset. For the past four years, BREG invested in substantial capital improvements and implemented an active management plan to convert the property from standard office zoning to its current medical office status. The asset repositioning strategy saw project occupancy rise from its vacant status at acquisition to a current occupancy rate of 72.5%.
“This project is representative of BREG’s deep value-add investment program,” says BREG CEO Doug Wells. “Our team successfully repositioned the property and created a durable cash flow stream by executing long-term leases with a diversified roster of medical tenants. This disposition allows us to realize the material value created from our project business plan and redeploy our investment capital into new repositioning opportunities.”
Caddis Healthcare officials say the purchase provides a strategic addition to its real estate holdings. “Shady Grove Medical Pavilion is a high-quality asset that lays out well for a multi-tenant strategy,” said Caddis CEO Jason Signor. “The property is a great investment for Caddis, it’s already home to a strong medical tenant base, and we have the opportunity to unlock additional upside by leasing up the remaining vacant space in the building.”
Chris Bodnar, Lee Asher and Shane Seitz from CBRE Healthcare Capital Markets listed the property for sale.
Earlier this month, Caddis announced plans to develop the 182-unit 191,000-square-foot Hartis Venice senior living community in Venice, FL.