North Carolina REIT acquires Little Rock medical office building for $34.85 million
by July 1, 2019 9:43 am 942 views
A medical office transaction in Little Rock closed recently for $34.85 million. The purchase price equals $360.42 per square foot.
Flagship Healthcare Trust (Flagship REIT), a private healthcare real estate investment trust managed by Flagship Healthcare Properties (Flagship), has acquired the Little Rock Diagnostic Clinic (LRDC) medical office building, home of the largest multi-specialty practice in Central Arkansas.
The 96,692-square-foot medical office building is 100% leased to CHI St. Vincent Medical Group and guaranteed by St. Vincent Health System, which is owned by Catholic Health Initiatives (CHI), the third largest nonprofit health system in the nation.
The building at 10001 Lile Drive sits on 9.63 acres on the campus of Baptist Medical Center near the intersection of I-630 and I-430 and was last expanded in 2010.
“We are honored to have been chosen by the physician partners of Little Rock Diagnostic Clinic for our first acquisition in the Little Rock market,” Gerald Quattlebaum, senior vice president of acquisitions at Flagship, said in a statement. “It was a pleasure working with the leadership at LRDC and the entire Flagship team looks forward to supporting their continued growth and success as their real estate partners.”
Established in 1961, the Little Rock Diagnostic Clinic is a large, multi-specialty medical practice providing diagnostic and treatment services to patients throughout central Arkansas. In September 2018, LRDC physicians and staff joined CHI St. Vincent Medical Group, a network of primary and specialty clinics spanning much of central and southwest Arkansas.
CHI St. Vincent executed a 10-year lease of the property at the end of 2018.
Todd Rice of Colliers International in Little Rock represented the seller, LRDC Real Estate LLC. The buyer was represented by Brock Martin of Orion Capital Partners.
“After extensive diligence and deliberation, LRDC Real Estate LLC has decided to partner with Flagship Healthcare Properties. The physician partners of LRDC Real Estate LLC have the utmost confidence in the management team of Flagship Healthcare,” said Dr. Nutan Bhaskar, vice president of LRDC Real Estate.
Little Rock Diagnostic Clinic employs over 30 physicians in the fields of internal medicine, endocrinology, neurology, gastroenterology, podiatry, pulmonology, OB/GYN and rheumatology. LDRC’s specialists draw patients from throughout Arkansas as well as Alabama, Louisiana, Mississippi and Oklahoma.