CHARLOTTE, N.C. — Flagship Healthcare Properties (Flagship), an outpatient healthcare real estate firm, has acquired a Class A medical office building (MOB) and ambulatory surgery center (ASC) in Fredericksburg, Virginia.
Built in 2011, the 96% leased multi-tenant property is located at 1500 Dixon Street. The building is anchored by Surgi-Center of Central Virginia, an affiliate of United Surgical Partners International, the area’s leading multi-specialty surgery center with four operating and three treatment rooms. Other tenants include HCA Virginia – Richmond Multi-Specialty, Fredericksburg Foot & Ankle Center, and Allergy & Asthma Center of Fredericksburg. The property is near the 471-bed Mary Washington Hospital, a regional medical center, and the 133-bed HCA Virginia’s Spotsylvania Regional Medical Center, a general acute care community hospital.
Fredericksburg is a part of the Washington metropolitan area, located halfway between Washington, D.C. and Richmond on the I-95 corridor. The greater Fredericksburg region has been named Virginia’s fastest-growing for five consecutive years, according to Virginia Economic Development Partnership. Education and healthcare serve as the city’s main employers and economic drivers. Due to Fredericksburg robust economy and ideal location, the city was recognized in 2019 as the #1 Best Small City for Quality of Life in Virginia and ranked #23 nationwide.
“What really attracted us to this outpatient facility was the tremendous synergies between the robust ambulatory surgery center (ASC) and the other tenant specialists in the building that utilize the ASC to perform their cases on a daily basis,” said Flagship’s Executive Vice President of Acquisitions Gerald Quattlebaum. “Another attraction to this particular property was that it adds scale in this thriving market in which we can build upon our existing presence.”
“We are excited about acquiring this high-quality medical office building anchored by a market leading multispecialty surgery center with trusted providers and a national ASC operator, in partnership, as a long-term tenant,” said Blake Bratcher, Flagship’s Executive Vice President of Ambulatory Surgery Centers. “Ambulatory surgery centers are at the forefront of transformation in health care delivery, and we are continuing to capitalize on new opportunities in alignment with physicians and surgery center operators to help them maximize their real estate so they can carry out their mission more effectively.”
The property was acquired through Flagship’s private real estate investment trust, Flagship Healthcare Trust (Flagship REIT). Flagship will also provide property management and asset management services for the MOB. Financing was provided by Fifth Third Bank.