Savlan Capital continued the rapid expansion of its national real estate portfolio with the acquisition of six more single-tenant, NNN medical office buildings valued at $12.3 million in total.
The purchases, made in Georgia, Tennessee, North Carolina, Indiana, Texas, and Colorado, follow closely on the heels of Savlan Capital’s recent medical office building acquisitions and are part of the company’s $100 million plan to shift and grow its existing portfolio towards the health care space.
To date in 2021, Savlan Capital has acquired 12 single-tenant medical office assets valued at nearly $26 million. The company currently has 16 more single-tenant buildings valued at approximately $45 million under contract and plans to to close on those in the fourth quarter of 2021.
“Our strategy is to double our portfolio by continuing to grow our health care and medical holdings and become an active player in the net-leased health care real estate market,” said Chief Executive Officer Zusha Tenenbaum.
“We will continue to target assets occupied by stable growth and credit tenants which provide vital services to their communities,” added Tenenbaum.
DaVita in Georgia, Tennessee, and North Carolina
Savlan Capital acquired three DaVita kidney care centers in Georgia, Tennessee, and North Carolina. DaVita operates nearly 2,400 dialysis clinics nation-wide, serving ±190,000 patients with an annual revenue of more than $14.7 billion.
Savlan Capital purchased a built-to-suit, DaVita-occupied building at 1611 Andrews Road in Murphy, NC for $2.0 million. DaVita has been the lone tenant in the building for 15 years and the asset’s position is further strengthened by North Carolina’s Certificate of Need requirement, which is intended to control health care costs by limiting duplicative services and facilities.
The company secured a DaVita location at 110 Heritage Court in Greenville, TN for $1.7 million. This built-to-suit facility is proximate to Ballad Health’s Greeneville Community Hospital, which serves 29 counties in northeast Tennessee.
Savlan Capital also procured a DaVita facility at 1065 East Franklin Street in Hartwell, GA for $1.5 million.
“Each of these assets is located in an area with a robust demographic profile, exhibiting excellent population and economic growth, while facing limited competition,” said Tenenbaum.
Jay Patel and Mike Spisak of Colliers represented Savlan Capital and the sellers in these off-market transactions.
Pinnacle Treatment Center in Indiana
Savlan Capital purchased a freestanding medical office building at 581 East Main Street in Hagerstown, IN for $1.4 million.
The building houses a Pinnacle Treatment Center, which specializes in addiction recovery. Pinnacle operates over 100 treatment centers in eight different states.
“This investment opportunity was attractive to us because Pinnacle has private equity backing and is committed to this community, with 16 years remaining on their current lease,” explained Tenenbaum.
Marcus and Millichap’s Nathan Whalen and Jeremie Johnson represented both Savlan Capital and the seller in the transaction.
Biomat USA in Colorado
Savlan Capital acquired a medical office building at 8800 West Colfax Avenue in Lakewood, CO for $3.9 million.
The structure is occupied by Biomat USA, a blood plasma donation and collection company and subsidiary of Grifols, S.A (NASADAQ: GRFS). Biomat USA has operated out of this Denver metropolitan area location for 14 years and recently extended its lease early.
Chase Jarrett with ERE Healthcare Real Estate Advisors represented both Savlan Capital and the seller.
Destination Pet in Texas
Savlan Capital also purchased a building on ±2.5 acres at 8827 US Highway 377 in Argyle, TX for $1.7 million.
“This acquisition was driven by the tenant’s exceptional long-term performance, commitment to remaining in the building, and their strong private equity backing,” said Tenenbaum. “The investment is further bolstered by the extremely strong demographics in the burgeoning Dallas-Fort Worth market.”
Isaiah Harf from Stan Johnson Co. represented both Savlan Capital and the seller in the transaction.
Multi-Tenant Medical Office Leasing Activity
Savlan Capital is also making a concerted effort to shift tenancy in its existing 1.2-million-square-foot multi-tenant business and office park portfolio towards medical and health care users.
The company recently signed a ±8,267-square foot, 11-year lease for Lakeside Dental Center’s new pediatric oral surgery center at Exchange South Business Park in Jacksonville, FL. Savlan Capital also secured a five-year, ±2,398-square-foot lease with Pearl Vision for its new location at Exchange South Business Park.
Lakeside Dental Center and Pearl Vision join a health care tenant roster at Exchange South Business Park that already includes Labcorp, SurgCenter, Fresenius, CVS Omnicare, IDEXX Laboratories, Apria Healthcare, Coram Healthcare, and Encompass Healthcare.
In Bradenton, FL, Savlan Capital secured a ±7,179-square-foot relocation lease with Qure4you on the ninth floor of Bradenton Financial Center. Qure4you is a health care IT support company that works with many of the largest health care providers and offers a complete digital health platform that supports patient needs from start to finish.
“Our strategies allow us to attract premier medical and health care tenants to our multi-tenant portfolio by creating exceptionally maintained spaces in ideal locations with tenant rosters that reflect the needs of the surrounding community,” said Tenenbaum.
About Savlan Capital
Savlan Capital is a fully integrated real estate investment company with over 20 years of extensive real estate investment management, acquisition, property management, development, and redevelopment expertise. Headquartered in Hollywood, Florida, Savlan Capital has a proven track record of successful investing in sustainable multifamily, office, industrial, medical office, and business parks in markets exhibiting diversified economies and strong population growth throughout the United States. For more information, please visit www.savlancapital.com.