Heitman-NexCore Acquires Medical Office Building in Washington, D.C. Suburb
Heitman LLC, a multi-national real estate investment management firm, and NexCore Group announced today the acquisition of a 64,261 square foot medical office building (MOB) on the campus of Doctors Community Hospital (DCH) in Lanham, a growing section of Prince George’s County located in suburban Washington.
With the purchase of the DCH MOB at $23 million, the Heitman-NexCore team has now completed a combined transaction volume of over $150 million, with two new development transactions breaking ground in the next month. NexCore will provide operating and property management services for the MOB under a long-term contract.
“This acquisition continues to broaden our relationship with NexCore, including our acquisition and development joint venture, and represents our third major closing together during the past year,” says Brian Pieracci, Senior Vice President at Heitman. “The DCH MOB – a high-quality, hospital-sponsored facility that houses hospital services and physician office space – is exactly the type of property that we seek to invest in with NexCore as our development and management partner.”
NorthMarq’s Washington Investment Services team of Jim Kornick and Matt Clineball brokered the medical office building acquisition on behalf of DCH. “We ran a very exhaustive, national process for Doctors Community Hospital,” says Kornick. “We wanted the highest monetization for our client and wanted a developer-owner that could provide future development services. After vetting numerous national firms, the Heitman-NexCore team rose to the top of our list because of their competitive offer, healthcare real estate expertise and ability to develop additional assets for the system. However, the deciding factor in our selection, without a doubt, was NexCore’s deep understanding of the hospital’s business and operational strategies.”
The Class A, four-story MOB (known as the Professional Office Building) was developed by DCH in 2009 to accommodate a strategic expansion of its services and attract targeted physician practices to the campus. Monetization of the MOB will allow DCH to invest capital in its various hospital programs and initiatives.
“NexCore has a great team that we connected with, and they clearly demonstrated an ability to deliver a high level of service when managing medical office space,” says Phil Down, Jr., Director of Real Estate at DCH. “NexCore also closed the transaction on time, with no delays in the review of due diligence materials or during contract negotiations. We are very pleased and look forward to a long-term relationship with NexCore.”
Tenants in the MOB, which were strategically recruited to support DCH programs, include full service imaging with mammography center, cancer center with cutting-edge treatment technology (including linear accelerator), multiple cancer-related practices (including oncology, hematology, and breast reconstructive surgery), cardiology and one of the area’s largest hospital-owned multispecialty practices.
About Heitman LLC
Heitman is a multi-national real estate investment management firm with approximately $22.4 billion in assets under management. Heitman is focused on three areas of real estate at the core of property and capital markets: direct investments in real estate, both in U.S. and Europe; investments in publicly traded securities, REITs, REOCs, and other real estate companies in the U.S., Europe and Asia; and origination and servicing of debt secured by real estate.