DePaul Medical Plaza
In 2016 Flagship Healthcare Properties, along with its joint venture partner, USAA Real Estate Company acquired DePaul Medical Plaza, a ± 99,236 square foot, LEED Silver certified, Class A medical office building located on the campus of Bon Secours DePaul Medical Center, north of downtown Norfolk, VA. The building, developed in 2014, was Flagship’s first acquisition in the Hampton Roads region and strengthened our relationship with Bon Secours Health System, one of the leading Catholic healthcare providers in the Southeast.
For a two-year old building, its leasing pace was behind schedule, despite its proximity to the hospital’s front door and its superior quality and finishes over competing facilities. Flagship employed an aggressive leasing strategy in conjunction with the local brokerage community to increase occupancy by identifying and signing tenants complimentary to DePaul Medical Center’s care delivery strategy. Flagship also employed an enhanced property management and tenant relations strategy to improve the tenant and patient experience. Additionally, Flagship negotiated a rent support agreement with the seller with burn-off provisions as permanent tenants were secured and leases signed.
As a result of Flagship’s value enhancements, the asset was sold with a favorable return. Flagship was retained as third-party Property Manager upon completion of the sale.