Cleveland-Area Medical Facility Sells for $58M
- Apr 26, 2021
A joint venture of New Manna Partners and University Hospitals has sold Lake Health Beachwood Medical Center, a 69,800-square-foot facility in Beachwood, Ohio, for $58.3 million. Newmark Global Healthcare Services arranged the transaction.
NMP broke ground on the acute-care hospital in 2018, in partnership with Lake Health and a group of 20 physicians. Hasenstab Architects and Robert Rosencrans, managing partner of Walden, Aurora, were also part of the development team. According to public records, the developer had acquired the 4.9-acre site at 25501 Chagrin Blvd. in 2017 for $3.2 million.
The two-story clinic, which became fully operational in 2020, houses surgery and radiology on the first floor. The second floor encompasses a patient care unit, laboratory, physical therapy space and pharmacy, as well as several physician office spaces. Specialty services provided also include orthopedics, urology, spine, general surgery and pain management.
The property is some 11 miles east of downtown Cleveland and less than 1 mile from downtown Beachwood, just west of Interstate 271. The upcoming MetroHealth Glick Center, a 270-bed hospital at W. 25th St., is situated some 12 miles west of the asset.
The Newmark brokerage team facilitating the transaction included Vice Chairmen Todd Perman and Terry Coyne, together with Senior Managing Director Jay Miele and Associate Director Richard Gerakitis.
Just last week, another Newmark team assisted the seller in the record-breaking disposition of a 29,991-square-foot medical office building in Newport Beach, Calif.
A solid Beachwood footprint
Beachwood Medical Center was Lake Health’s first hospital outside of Lake County. In 2019, University Hospitals became a minority partner in the project through the acquisition of a portion of NMP’s interest. Earlier in April, Lake Health became a member of the UH health system through membership substitution.
UH is also the owner of Ahuja Medical Center, a 144-bed hospital located 1 mile south of the Lake Health facility. In March, UH revealed plans for a $236 million expansion of the Ahuja facility to encompass a 216,000-square-foot hospital building and a 78,000-square-foot sports medicine clinic. Groundbreaking is slated for later this year, with completion anticipated for 2023.