Flagship Healthcare Properties (Flagship) was hired to develop a 21,000 SF ambulatory surgery center (ASC) for a joint venture operating partnership between Caldwell UNC Health Care (Caldwell UNC) and several local orthopedic physicians. The ASC was constructed adjacent to an existing 24,000 SF medical office building (MOB), also developed by Flagship, and anchored by Caldwell UNC in Granite Falls, NC. Like the MOB, the ASC is owned by Flagship Healthcare Trust, a private REIT managed by Flagship, and subject to a ground lease from Caldwell UNC. The facility is designed to ultimately accommodate 4 operating rooms, 2 procedure rooms, 7 PACU bays, 8 pre/post-surgery bays, and supporting functions.

Collaborating with appraisers and outside legal counsel to evaluate deal points for fair market compliance under Stark laws, Flagship assisted with the complex and time consuming land entitlement and Certificate of Need (CON) processes. Flagship worked on behalf of Caldwell UNC to identify, contract and purchase land which assisted in expanding them into two new territories within its market. Flagship structured a multiparcel ground lease and building leases that allowed the hospital to retain land ownership, preserve capital, expand its service offerings and retain various building control provisions while Flagship funded, developed, owns and manages the new buildings. Flagship successfully programmed a cost efficient outpatient surgery center with input from stakeholders used to operating within a hospital system-owned, inpatient setting.

Capital costs were supplied by Flagship with no additional funding needed by the client.