Flagship Healthcare Properties Announces Acquisition in Hickory, North Carolina
Commercial healthcare real estate firm acquires medical office building and ambulatory surgery center
CHARLOTTE, N.C. (December 20, 2019) – Flagship Healthcare Properties (Flagship) announces the addition of a 45,390-square-foot, Class A medical office building and ambulatory surgery center (ASC) to its private real estate investment trust portfolio. Located at 214 18th Street SE in Hickory, N.C., and fronting Tate Boulevard SE, the building is fully leased by OrthoCarolina and Frye Surgery Center.
OrthoCarolina, one of the nation’s largest and most reputable orthopedic practices, leases 72%, or 32,522 square feet. Services and capabilities offered at OrthoCarolina include physical therapy, urgent care, mobile on-site MRI, foot and ankle pain, hand surgery, joint replacement, spine care, and physiatry and sports medicine.
The property is also home to Frye Surgery Center which leases 28%, or 12,868 square feet. The Frye Surgery Center operates as a department of Frye Regional Medical Center, part of Duke LifePoint Healthcare. Frye Regional Medical Center has served the health and medical needs of the residents of the Catawba Valley region since 1911, with a commitment to delivering high quality and compassionate care with a focus on patient satisfaction and clinical outcomes. The ASC offers an array of surgical services in four surgical suites, such as cardiothoracic, neurosurgery, vascular, oncology, oculoplasty, dental, orthopedic, ear nose and throat, plastic and reconstructive, urological, general, gynecology and podiatry.
“We are pleased to acquire this first class facility that houses two prominent healthcare providers,” said Gerald Quattlebaum, senior vice president of acquisitions. “We have a long-standing relationship with OrthoCarolina and have a tremendous amount of respect and admiration for what they do. We look forward to working with both tenants and expanding those relationships in the Hickory market.”
Flagship acquired the facility in its private real estate investment trust, Flagship Healthcare Trust, Inc. (Flagship REIT). The property was acquired from a partnership consisting of Hunt Shuford, David Looper and the Broyhill family. A portion of the sellers’ equity was contributed via an UPREIT transaction on a tax-deferred basis to Flagship REIT.
“We are honored to be the real estate partner chosen by the sellers and warmly welcome these new investors to the Flagship REIT family,” added Charles Campbell, CEO and co-managing partner.
Flagship will work collaboratively with Mr. Shuford to provide property and asset management services.
Financing for this transaction was provided by First National Bank.