Lee's Hill MedicalPlaza
Lee's Hill Medical Plaza
In 2014 the Flagship Healthcare Real Estate Fund and its joint venture partner acquired Lee’s Hill Medical Plaza. The ± 72,098 square foot facility includes a freestanding emergency department operated by Mary Washington Healthcare, a two-hospital, 537-bed acute care system; a diagnostic imaging center; physician office space; and a Department of Veterans Affairs (VA) outpatient clinic.
The building was suffering from low occupancy (only 68% leased), a need for professional property management, and a comprehensive leasing strategy. The relationship between the radiology group as both landlord and imaging center JV partner with the hospital was limiting the property’s leasing success and complicating the group’s relationship with its co-tenant, Mary Washington Healthcare.
Flagship Healthcare Properties rebranded the property and partnered with a local team to communicate the new ownership’s vision and approach to the market. In less than 12 months, we increased occupancy to 84% with the addition of complementary medical tenants. Occupancy by the VA will supplement the hospital’s services, driving improved community awareness and higher patient volumes.
As a result of Flagship’s value enhancements, the asset was sold with a favorable ROI. Flagship was retained as third-party Property Manager upon completion of the sale.