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Lillibridge Closes On $90M Hospital Deal

BIRMINGHAM, AL-Inkana Development, a national medical office builder, sells the 448,000-sf Medical Center East for about $200 per sf.

By Alex Finkelstein | Updated on November 01, 2006

BIRMINGHAM, AL-Chicago-based Lillibridge, part of the Ascension Health corporate family, has acquired a three-building, 448,000-sf medical office building complex at Medical Center East from locally based Inkana Development.

Lillibridge and Inkana officials couldn’t be reached by GlobeSt.com’s publication deadline to learn the price. However, Birmingham -area brokers familiar with recent medical office building transactions, tell GlobeSt.com that the portfolio was probably priced in the $200-per-sf range at the minimum. That would give the transaction an estimated $90-million tag and easily make it below-replacement cost, brokers point out.

Birmingham brokerage sources tell GlobeSt.com that they based their $90-million estimate on Governors Medical Tower, a five-story, 125,000-sf, $30-million medical office structure that Inkana plans to erect on land owned by Huntsville Hospital at Governors Drive and Gallatin Street in Birmingham. That per-sf-price comes to $240 per sf. Brokers say medical office buildings regionally and nationally are being constructed in the $250 per-sf to $400 per-sf range, depending on the special medical equipment involved.

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