Flagship Healthcare Trust Acquires Little Rock Medical Office Building
CHARLOTTE, N.C. (July 1, 2019) – Flagship Healthcare Trust (Flagship REIT), a private healthcare real estate investment trust managed by Flagship Healthcare Properties (Flagship), has announced its acquisition of the Little Rock Diagnostic Clinic (the Clinic) medical office building, home of the largest multi-specialty practice in Central Arkansas. The 96,692-square-foot medical office building (MOB) is 100% leased to CHI St. Vincent Medical Group and guaranteed by St. Vincent Health System, which is owned by Catholic Health Initiatives (CHI), the third largest nonprofit health system in the nation.
“We are honored to have been chosen by the physician partners of Little Rock Diagnostic Clinic for our first acquisition in the Little Rock market,” said Gerald Quattlebaum, senior vice president of acquisitions at Flagship. “It was a pleasure working with the leadership at LRDC and the entire Flagship team looks forward to supporting their continued growth and success as their real estate partners.”
Little Rock Diagnostic Clinic (LRDC) was formed nearly 60 years ago and has grown to be the largest multi-specialty practice in Central Arkansas. In September 2018, the physicians, providers and coworkers of LRDC joined CHI St. Vincent Medical Group, a network of primary care and specialty clinics spanning much of Central and Southwest Arkansas. “After extensive diligence and deliberation LRDC Real Estate LLC has decided to partner with Flagship Healthcare Properties. The physician partners of LRDC Real Estate LLC have the utmost confidence in the management team of Flagship Healthcare,“ said Dr. Nutan Bhaskar, M.D. vice president of LRDC Real Estate. Little Rock Diagnostic Clinic employs over 30 physicians in the fields of Internal Medicine, Endocrinology, Neurology, Gastroenterology, Podiatry, Pulmonology, OB/Gyn and Rheumatology. LDRC’s specialists draw patients from throughout Arkansas as well as Alabama, Louisiana, Mississippi and Oklahoma.
Located on the campus of Baptist Medical Center, the property is strategically located in the highly desirable West Little Rock market at the juncture of I-630 and I-430. In addition to clinical office space for the practicing physicians, the MOB is also home to an ambulatory surgery center (ASC), a comprehensive diagnostic imaging suite containing two MRI’s, CT, Ultrasound, X-ray and bone densitometry machines and a COLAâ Laboratory of Excellence accredited lab providing over one million tests per year, as well as an infusion therapy center.
Flagship Healthcare Properties acquired the property from the physician partners of LRDC on behalf of its private REIT, Flagship Healthcare Trust, Inc. (Flagship REIT). Brock Martin with Orion Capital Partners represented Flagship and Todd Rice, CCIM of Colliers International represented the seller.
Capital Bank, a member of the First Horizon family of companies, provided financing for the transaction.