MERRIFIELD, VA-Prosperity Medical Center, a still young medical office property totaling 255,000 sf, has joined the portfolio of Washington Real Estate Investment Trust through the REIT’s $78 million purchase from Atlantic Realty Cos. The transaction involved $28.3 million in cash, as well as the assumption $49.7 million in existing mortgage debt.

Situated off Route 50 about a mile from the Capital Beltway and an equal distance away from the 750-bed INOVA Fairfax Hospital, the Prosperity property is comprised of three multi-story structures–known as Prosperity Medical Center I, II and III–a separate parking garage facility and surface parking. There is also an on-site bank, deli and pharmacy at the Arlington Road locale. Tenants at the property, which is currently 98% occupied, include Children’s National Medical Center, INOVA Health Care Services, the Jones Institute for Reproductive Medicine, and USOncology.

Development of the 92,000-sf four-story Prosperity I for $20 million in 2000 marked the first new medical office building to be constructed in Northern Virginia in 10 years. Prosperity II and III, completed in 2001 and 2002, respectively, consist of 80,000 sf of space, each.

For Rockville, MD-based WRIT, the acquisition brings the company’s holdings of medical office properties up to five structures. “This is our second medical office park acquisition,” company CFO Sara Grootwassink tells “We acquired the two-building Woodburn Medical Park in November 1998; it is located on the other side of INOVA Fairfax Hospital.”

While WRIT also pursues regular office, industrial/flex, multifamily and retail properties, the company plans to continue to bring other medical office properties into its portfolio, too. “We have stringent acquisition criteria,” Grootwassink adds of what WRIT looks for in medical office buildings. “The property needs to be nearby a major hospital center, and built specifically for medical office use.” WRIT expects to see a 10.8% first year return on investment on a leveraged basis on the Prosperity property.

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