Metro DC Medical Office Building Trades for $39M

Heritage Partners sold the 60,000-square-foot facility in a three-party transaction involving Children’s National Hospital.
Children’s National Prince George’s County Regional Medical Center. Image courtesy of Ira Wexler Photography

Heritage Partners has sold Children’s National Prince George’s County Regional Medical Center, a 60,000-square-foot facility in Glenarden, Md. Municipal Acquisitions financed the $39.3 million purchase through tax-exempt and taxable bonds. The three-party transaction involved a proprietary structure allowing Children’s National Hospital to receive eventual lien-free ownership of both the building and the underlying land. Avison Young Principal Jonathan Hipp negotiated the deal on behalf of the seller.

Children’s National Prince George’s County opened this July under a triple net lease. The three-story building at 2900 Campus Way N. is within the Woodmore Towne Center shopping mall. The largest regional outpatient facility in the health system’s portfolio houses a pediatric ambulatory surgery center and spaces for pediatric medical offices. Children’s National will continue to occupy the building under a new lease providing several economic benefits such as lower overall occupancy costs.

The 1.4-acre property is some 14 miles east of downtown Washington, D.C., near the Capital Beltway-MD 202 interchange. Kaiser Permanente Largo Medical Center is less than 2 miles south of the facility.