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FAIRFAX, VA-Gyrodyne Co. of America, a Long Island-based real estate investment trust, has closed on Fairfax Medical Center here for $12.89 million, or $221.84 per square foot. It is the third medical office property purchase for Gyrodyne since its conversion to a REIT–and the first in the DC area. Virginia Commerce Bank provided $8 million in mortgage financing.

Fairfax Medical Center is located at 10721 Main St. on 3.5 acres across the street from a surgical center owned by Hospital Corporation of America. The 58,000-square-foot property is approximately 84% leased to 28 tenants.

Gyrodyne announced in February that it was acquiring the property. One of the drivers for the deal was its qualification for tax deferral treatment, allowing the company to satisfy within required time limits the $26-million advance payment for property seized by the State of New York under the power of eminent domain. In additions, the $12.89-million purchase price is a $269,000 reduction in the previously announced purchase price.

The company also invested in the asset because it likes the DC area–particularly for this cycle. Gyrodyne has “identified the Metro DC real estate market as one positioned to perform extremely well in the next cycle,” according to Peter Pitsiokos, Gyrodyne’s COO.

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