Flagship Healthcare Trust Acquires Wilmington, North Carolina Medical Office Building
WILMINGTON, NC – August 07, 2018 – Flagship Healthcare Properties (“Flagship”), manager of private REIT Flagship Healthcare Trust, Inc. (”Flagship REIT”), announced today that the REIT has acquired a Class A medical office building in Wilmington, North Carolina.
Located at 2800 Ashton Drive, the two story, 21,417 square foot medical office building was developed in 2000 by four physicians with synergistic specialties in order to provide a regional, all-in-one spine center in the thriving Wilmington, North Carolina market. The building is fully leased with anchor tenants Port City Neurosurgery & Spine and Coastal Rehabilitation Medicine. Patients also benefit from an on-site physical rehabilitation clinic operated by New Hanover Regional Medical Center along with diagnostic imaging and an orthotic and prosthetics provider.
“It’s a tremendously exciting time for Flagship and our REIT to be able to add this quality asset to our portfolio. The physicians who developed the building and continue to practice there today truly had a vision for creating a patient-centric environment and have surrounded themselves with like-minded practices. The diverse and complimentary tenant mix cultivates a very collaborative environment for both the patients and providers alike,” said Gerald Quattlebaum, Senior Vice President of Acquisitions with Flagship Healthcare Properties.
“In addition to the first-class real estate, we are very pleased to welcome the physicians who partnered with us on the transaction into Flagship REIT as equity investors. I am very happy for them that they were able to realize the value they have created in the property while remaining invested in the healthcare real estate space going forward through their continued ownership of equity interests in our private REIT’s operating partnership. It’s a win-win scenario all around,” continued Mr. Quattlebaum.
The sellers elected to contribute a portion of their ownership interests in the property to Flagship REIT’s operating partnership in exchange for operating partnership units in the partnership via a 721 tax-deferred contribution.
“Although we weren’t actively in the market to sell our building, we were introduced to Flagship who were very helpful in working with us to structure a way for us to benefit from what we had created along with a continued investment in a more diversified way going forward. Through the process we developed a relationship that proved mutually beneficial. They’ve been great partners to work with and we look forward to our continued relationship into the future,” commented Dr. Ben Wall, one of the selling partners.
The transaction was sourced by Will Robertson, Vice President of Leasing & Brokerage with Flagship Healthcare Properties, and financing was facilitated by Paul Shipley of Capital Bank. Flagship Healthcare Properties will provide asset management services for the building and the sellers will continue to self-manage the property.
Russell Brown, Senior Vice President of Investments at Flagship, concludes, “We are very pleased to be expanding our portfolio into Wilmington proper. It is a market we have been interested in for quite some time, and the Ashton Drive medical office building is an excellent addition to the Flagship REIT.”