ATLANTA—As Atlanta's medical office market continues heating up, Brookhaven Medical Center is the latest facility to trade hands. The sale price: $27.6 million.
Marcus & Millichap brokered the sale. Korey Prefontaine, senior director in the firm's Atlanta office, Sonny Molloy, senior vice president investments, Bob Johnson, senior director, and Jared Kaye, senior associate, represented the seller, a joint venture between G.H. Anderson & Co. and The Gipson Co. The group also procured the buyer, Caddis Partners LLC.
“The center is fully occupied by Walgreens and Piedmont Healthcare,” says Prefontaine. Piedmont Healthcare, which has a proven track record in this market, recently relocated to the site. Both tenants benefit from excellent demographics, accessibility, and exposure along Peachtree Road.”
Located in Brookhaven, GA, the healthcare real estate property is 48,588-square feet and located at the intersection of Peachtree Road and Colonial Drive, which is adjacent to Atlanta's Buckhead Business District. The trade area also includes Kroger, Stein Mart, Wells Fargo, Starbucks, Pep Boys, Kauffman Tire, and Town Brookhaven, a 600,000-square-foot mixed-use development.
The Lenox Square and Phipps Plaza shopping malls are approximately two miles away, and Oglethorpe University is within a mile and a half. Both tenants have corporate-guaranteed leases and strong investment-grade credit ratings.
The decline in medical office vacancy was due to very strong demand with annual absorption at 639,378 square feet, the market's highest level since 2008, coupled with a low level of new deliveries amidst Atlanta's growing economy.
“Atlanta's population and income growth have been strong and steady for the past few years and are expected to continue for the foreseeable future, and these create very favorable conditions for medical office demand,” Keith Pierce, director of Research for the Southeast US, Transwestern, tells GlobeSt.com. “Consistent demand and limited development during the past several years have resulted in Atlanta's tight medical office market.”
(Here's what to expect in Atlanta's medical office market in 2018).
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