$47M Buys 650,000-SF Medical Office Complex

The buildings, built in 1882 on 27 acres, were formerly occupied by St. Elizabeth Hospital. The hospital closed the hospital in 2000, then vacated the property just prior to 2002. Bart Weprin with Sperry Van Ness, which represented the buyer, says management and space needs may have forced the hospital to close. "I think there was just too many beds in the city," Weprin says. Marcus & Millichap represented the seller.

After RNS bought the buildings, it spent $28 million in a renovation of the property, he says. Instead of looking for one tenant, the new owners decided to parcel out the property in the manner of a retail mall, Weprin says. All it took was one doctor to come in, Weprin says, and many tenants followed. Now, the complex is occupied by four specialty uses, including a surgical hospital, an acute rehabilitation hospital, a long-term acute rehabilitation hospital and a bariatric diagonal/cosmetic surgery center. The medical mall also houses Wright State University Boonshoft School of Medicine, Montgomery County clinical and administrative offices and other complimentary tenants.

"RNS got in at the right time, and did good for the building," Weprin tells GlobeSt.com. "They also leased at under-market prices. They're at about $10 per sf, where the market averages about $14 to $15 per sf, and the property has space comparable to areas getting $20 per sf."

He says the new owners are going to spend more money on renovations, including better parking, security and lighting, but says he doesn't know an exact figure for the improvement costs. Mark J. Mimms with the Fresno, CA office of SVN assisted Weprin on the deal.