Frederick Health Acquires 387 KSF Office Building
- Nov 13, 2019
Frederick Health acquired a 387,000-square-foot office building in Frederick, Md., for $18 million. At the beginning of 2018, the site had an assessed value of $38 million. The seller of the former State Farm location was Lone Star Funds. Fitzgerald Realty Group assisted the buyer in the acquisition of the property, which will serve as a new center for the company’s operations.
The campus will be renamed Frederick Health Village and it will house the hospital’s home health-care services and hospice, as well as some administrative offices. Frederick Health will keep its current office in downtown Frederick and will develop its new location in the coming years.
Located at 1 State Farm Drive, the property was built in 1995 and sits on 93 acres of land. In addition to the office space, it features a 20,000-square-foot warehouse, a 9,300-square-foot data center and 1,600 parking spaces.
Lone Star Funds had acquired the asset in 2013 in a portfolio sale-leaseback transaction from State Farm. The insurance company sold 23 of its operations centers, totaling 6.2 million square feet in 16 states, for $720 million, according to Yardi Matrix data.