Davenport Medical OfficeBuilding
Davenport Medical Office Building
Flagship acquired this 43,104 rentable square foot, 3-story medical office building (MOB) and ambulatory surgery center in the first quarter of 2021 as a value-add opportunity. The building was 69% leased by AdventHealth (Fitch AA, 2020). Davenport MOB is located adjacent to the campus of AdventHealth Heart of Florida and is highly visible and easily accessible from Highway 27 in the rapidly growing metro areas of Lakeland and Winter Haven, Florida. Advent Health purchased Heart of Florida in 2019 as part of its entry into the growing market, and now owns over 40 hospitals in 10 states, the majority of which are located in the State of Florida. This on-campus MOB adjacent to AdventHealth’s growing hospital made it a very attractive investment for Flagship and a chance to create significant value for Flagship’s investors.
Flagship understood the previous owner had some limitations to providing a new tenant the incentives needed to capitalize and create the most value. The vacant space provided an incredible opportunity. Flagship worked closely with our local leasing partner to market the space identified a user for the vacant surgery center space within a few months. A creative lease structure allowed the tenant time to ramp up their business volume generating a huge win/win for the tenant and Flagship.
By stabilizing property to 100% occupancy with a creative lease structure, Flagship has succeeded in this value add play, increasing the properties value by more than 40% of the initial purchase with minimal additional capital for the new tenant.