MARIETTA, GA-Marietta Medical Center, a 98,534-square-foot medical office building, has sold for $250 million. Boston-based Marcus Partners and Atlanta-based Ackerman & Co. acquired the property in a joint venture.
This class A property includes a five-story medical office building and an attached structured parking garage located adjacent to WellStar Kennestone Hospital, the second largest hospital in metro Atlanta. The property is only 53% occupied.
“This was an REO property that we purchased from State Farm,” Kyle O’Connor, director of investment activities for Marcus Partners’ Mid-Atlantic region, tells GlobeSt.com. “The location directly adjacent to one of the top three hospitals in Atlanta combined with what we thought was a very compelling basis given the quality of the property led us to acquire this asset.”
O’Connor says the property fits into Marcus Partners’ strategy to invest in good quality, well-located, value-add commercial assets at below replacement costs. The company will continue to seek similar opportunities in East Coast markets, often with the help of joint venture partners. O’Connor says the firm partnered with Ackerman in the deal because of the firm’s experience leasing up medical office buildings.
"Marietta Medical Center is a good property that has enjoyed high occupancy for most of its life,” says Kris Miller, president of Ackerman & Co. “Although currently 53% occupied, we are confident our local operating expertise and well funded new ownership with capital to fund lease commissions, tenant improvements, and planned renovations will enable us to attract new tenants to fill the vacancy.”
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