SUMMARY

The Flagship Healthcare Real Estate Fund acquired this state-of-the-art, 7,341 square foot facility in December 2015. Central Piedmont Surgery Center, the building’s sole tenant, is a wholly owned operation of Randolph Hospital. The center has two operating rooms (ORs) and is equipped to handle procedures for general surgery, orthopedics, otolaryngology, urology, podiatry, ophthalmology and gynecology.

CHALLENGES

• The surgery center was designed and built four years prior to acquisition.
• The HVAC system was creating excessive humidity and was running inefficiently, thereby generating excessive energy bills and causing surgery cancellations and lost patient revenue.

SOLUTIONS

• During due diligence, Flagship observed the system and met with Randolph to better understand their issues.
• Randolph waived its right to acquire the property, placing its trust and confidence in Flagship to help them address its issues.
• Upon closing, Flagship’s property management team worked expeditiously with a team of engineers to identify, price and recommend a set of alternatives that would meet Randolph Hospital’s strict OR specifications and create a reliable and efficient operating environment.