FREDERICKSBURG, VA – January 25, 2018 – Owners Flagship Healthcare Properties (“Flagship”), together with Drake Real Estate Partners (“Drake”), have sold Lee’s Hill Medical Plaza, a class “A” medical office building and free-standing emergency department located at 10401 Spotsylvania Avenue in Fredericksburg, Virginia. The ±72,255 square foot medical office building (“MOB”) is anchored by the Mary Washington Healthcare System & Radiologic Associates of Fredericksburg.
The selling entity purchased the property in 2014 as a value-add opportunity and has since improved occupancy, bringing the asset from 68% leased to 91% leased. New tenants brought to the building under Flagship and Drake’s ownership include the U.S. Department of Veterans Affairs. Additionally, several existing tenants expanded their space within the building and the hospital anchor tenant, Mary Washington Healthcare System, executed a long-term lease extension. Mary Washington Healthcare System provides numerous services at the Lee’s Hill property, including an emergency and outpatient center, medical imaging (in a joint venture with Radiologic Associates of Fredericksburg), laboratory services, and a wound healing center.
“Having successfully executed several expansions and long-term renewals, Drake & Flagship are pleased to be placing Lee’s Hill Medical Plaza in capable hands with a propitious future,” said Ryan Dawson, Vice President of Asset Management with Flagship. “Positioned for continued growth, the asset’s superb location, distinguished tenancy, stable occupancy, and critical medical functions combine to make the property a natural fit for the new ownership.”
“The Drake/Flagship partnership has proven to be a fruitful one. The successful lease-up of the asset has allowed us and our investors to achieve our financial goals, and also bring shared value to our tenants and the surrounding community by securing a long-term home for Mary Washington Healthcare in Fredericksburg.” said Jonathan Garonce of Drake Real Estate Partners.
Completed in 2008, Lee’s Hill Medical Plaza sits on 5 acres conveniently located off the I-95 and US Route 1 interchange, immediately south of downtown Fredericksburg. The property is also proximate to two major hospitals – approximately 5 miles from Mary Washington Hospital and 2½ miles from HCA Spotsylvania Regional Medical Center.
Flagship Healthcare Properties will be retained as property manager. “We are delighted to continue our association with this exceptional asset and its high-quality tenant base as property manager under the asset’s new ownership,” adds Joe Shull, Partner and Director of Property Management for Flagship.
Commercial Real Estate firm Avison Young’s Jim Kornick, Principal in the Washington, DC office and Mike Wilson, Principal in the Chicago office represented the sellers.
About Drake Real Estate Partners
Drake Real Estate Partners (“Drake”) is a New York based private equity real estate investment manager which has invested in over $900 million of real estate across three investment funds. It has invested across a variety of geographies and asset classes, including multifamily, industrial, office/medical office, self-storage, retail, and hospitality.
Drake is a proud member of 1% For The Planet, donating 1% of the firm’s revenues to not-for-profit conservation-related initiatives in the markets in which it invests. For further information, visit www.drakerep.com.
About Flagship Healthcare Properties
Flagship Healthcare Properties, LLC (“FHP”) is a fully integrated commercial real estate firm focused on healthcare and professional office properties. FHP was formed in 2010 through the combination of two legacy firms with roots dating back to 1985.
FHP provides its clients a full range of real estate services including investment and capital solutions; development; property sales, leasing, and marketing; and facilities, property, and asset management. FHP operates an integrated platform, having developed over 1.6 million square feet and currently managing, directly or indirectly, more than 3 million square feet of primarily healthcare-related office space across more than 100 properties throughout the Southeast and Mid-Atlantic. For further information, visit www.FlagshipHP.com.