MedProperties Realty Advisors, LLC announced that it has formed a joint venture (JV) with Capital Security Advisors and Physicians Realty Trust to acquire its first health care property in Delaware – the 140,205 square foot, multi-tenant Eden Hill Medical Center in Dover. The acquisition closed last fall.
Financial terms were not disclosed
The Class A, three-story facility at 200 Banning St. is less than a mile from Bayhealth Kent General Hospital. The medical office building (MOB) is 94 percent leased to a roster of 23 tenants representing Dover’s physician practices that include gynecology, urology, and cardiology, including some practices affiliated with Bayhealth. The center also includes a 24,000 square foot surgery center.
The seller of the property was Eden Hill Medical Center, LLC, which was formed by some of the physician group tenants that originally developed the building in 2008 as part of a 23-acre master planned site that is owned by an affiliated entity. To date, the only other facility developed on the site is a rehabilitation/skilled nursing facility.
Darryl Freling, Managing Principal of MedProperties Realty Advisors, a national healthcare real estate private equity firm headquartered in Dallas, says MedProperties executives are pleased with their first acquisition in Delaware, which now gives the firm investments in 24 states.
“We acquired the MOB on an off-market basis after being introduced to the investment opportunity by Dennis Irvin, the CEO of Capital Security Advisors who had a relationship with the seller. The MOB checked every box for us. The project is a Class A, institutional facility with a long, weighted average lease term from the area’s leading practice groups as well as tenants affiliated with the area’s leading hospital system, and has been over 90 percent leased since it was developed in 2008.” said Freling.
Capital Security Advisors, a Boston-based investment management and advisory firm focused on infrastructure and real estate, brought the deal to MedProperties and holds an equity position in the JV.
Freling noted that MedProperties is the majority owner and manager of the JV, and DOC committed to a 49 percent equity stake in the project.
Negotiated rights of first refusal on the remaining, undeveloped parcels within the 23-acre property.
Debt for the acquisition was provided by Capital One, with a participation by Siemens Financial Services.