LEESBURG, VA–Healthcare Realty Trust has purchased Inova Loudoun II, a 103,500-square-foot medical office building located on Inova Loudoun Hospital's campus The property traded off-market, sold by a JV between Foulger-Pratt and a global real estate investment management firm. The JV was represented by Avison Young Principals Jim Kornick, Chip Ryan, Mike Wilson, Erik Foster and Mark Johnson.
It traded for about $45 million, according to public records.
Inova Loudoun II exemplifies Healthcare Realty's strategy of acquiring core medical facilities on the campuses of market-leading health systems, Vice President Sushil Puria said in a prepared statement.
What Puria didn't note, though, was how rare such assets come to market — especially multi-tenant properties, as opposed to master-leased, such as Inova Loudoun II.
That is market forces at work, Kornick told GlobeSt.com.
“The market for core medical office buildings is as aggressive and frothy as it ever has been with REITs still very active buyers.” In the past year, though, they have been joined by pension fund advisors and foreign investors — especially from Germany — interested in these assets.
Pricing for non-core medical offices — that is office buildings not located on a hospital campus — has softened a bit since last year but not for core, Kornick said.
They are hard to come by and buyers must pay top dollar for them, he said.
LEESBURG, VA–Healthcare Realty Trust has purchased Inova Loudoun II, a 103,500-square-foot medical office building located on Inova Loudoun Hospital's campus The property traded off-market, sold by a JV between Foulger-Pratt and a global real estate investment management firm. The JV was represented by Avison Young Principals Jim Kornick, Chip Ryan, Mike Wilson, Erik Foster and Mark Johnson.
It traded for about $45 million, according to public records.
Inova Loudoun II exemplifies Healthcare Realty's strategy of acquiring core medical facilities on the campuses of market-leading health systems, Vice President Sushil Puria said in a prepared statement.
What Puria didn't note, though, was how rare such assets come to market — especially multi-tenant properties, as opposed to master-leased, such as Inova Loudoun II.
That is market forces at work, Kornick told GlobeSt.com.
“The market for core medical office buildings is as aggressive and frothy as it ever has been with REITs still very active buyers.” In the past year, though, they have been joined by pension fund advisors and foreign investors — especially from Germany — interested in these assets.
Pricing for non-core medical offices — that is office buildings not located on a hospital campus — has softened a bit since last year but not for core, Kornick said.
They are hard to come by and buyers must pay top dollar for them, he said.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
