Global Medical REIT Snaps Up Virginia Asset
- May 08, 2020
Global Medical REIT has acquired Dumfries Health Center, a medical office building in Dumfries, Va., for $19.3 million. Built in 2009, the 99,718-square-foot asset is located at 3700 Fettler Park Drive in Prince William County, 30 miles southwest of Washington, D.C. The single-tenant property is leased to government contractor Spectrum Healthcare Resources on a long-term basis.
Marcus & Millichap’s Institutional Property Advisors (IPA) arm represented the seller, 3700 Fettler Park LLC, and procured the buyer. The property was purchased with an existing CMBS loan in place, according to a statement provided to Commercial Property Executive.
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The health-care facility, a family clinic of Fort Belvoir Community Hospital, serves around 28,000 military personnel and their families throughout the nation’s capital and the surrounding region. The building, located near Marine Corps Base Quantico, was recently upgraded to allow for additional services including urgent care, sports medicine with state-of-art-wading pools, immunizations and an expansion of the on-site pharmacy.
Randall Heilig, IPA vice president investments, noted in a statement that government-backed, third-party operators are emerging as a new trend in the market for sought-after medical office assets. He suggested that although the COVID-19 pandemic has posed challenges for providers of non-emergency health services, a surge of pent-up demand will mitigate setbacks for the market after the health crisis is over.
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Based in Bethesda, Md., Global Medical REIT specializes in the acquisition of state-of-the-art, licensed medical facilities from leading health-care providers. The NYSE-listed trust has a portfolio spanning 3.1 million leasable square feet as of March 31, 2020.
The REIT said in its first-quarter results announcement that, due to the COVID-19 pandemic, it estimates that $2 million of rent that ordinarily would have been collected from April through July will be deferred and is now expected to be collected primarily in the July to December period.
IPA’s Robert Filley, Chandler Pace and Chris Dale, along with Heilig, arranged the transaction for Dumfries Health Center.