Anchor Health Properties (Anchor), a national full service healthcare real estate development, management, and investment company focused exclusively on medical facilities, has recently acquired the newly constructed and best in market Brookhaven Medical Center II, a 51,429 square foot medical office building in the Buckhead / Brookhaven submarket of Atlanta, Georgia. Anchor acquired the asset, located at 3929 Peachtree Road, through a joint venture with an affiliate of The Carlyle Group. Anchor’s co-managed discretionary equity fund, Chestnut Healthcare Fund I, also invested in the project.
Developed by the G.H. Anderson & Company and The Gipson Company, the building will be occupied by a roster of best in class regional tenancy, anchored by Piedmont Healthcare (“Piedmont”), one of the largest health systems in the Southeastern US. Piedmont established a clinical hub at the adjacent Brookhaven Medical Center I in 2015 to complement its inpatient operations at the Piedmont Atlanta Hospital and provide healthcare services to the community in Brookhaven and surrounding Buckhead neighborhoods. Completed in the second quarter of 2020, the Brookhaven Medical Center II marks a meaningful expansion by Piedmont and its partners to expand clinical offerings for its patient base and further establish the Brookhaven hub as a destination for outpatient healthcare services. Piedmont’s operations at the property will include a strategic partnership with OrthoAtlanta and other specialty services, including a CON governed ambulatory surgery center (“ASC”).
Anchor’s Chief Investment Officer James Schmid stated, “We are pleased to add this mission-critical, hospital-affiliated asset to our portfolio. The investment was made as a forward takeout prior to the commencement of construction, and Anchor successfully integrated its development platform into the oversight of the construction from start to finish, helping to ensure a successful investment upon opening, and demonstrating Anchor’s ability to maximize our fully integrated operating platform. This facility enhances our growing portfolio of Atlanta area investments and expands our already productive relationship with Piedmont Healthcare. We are proud to be partners with some of the finest healthcare providers in the market and establish a presence in the Brookhaven submarket. Adding value to health systems and assets through creative deal structures, we are able to help enhance the patient experience through greater access to high-quality care. We are now among the largest landlords to Piedmont Healthcare, and among the largest landlords in metro Atlanta. We have chosen to open an operational office in the market headed by Mervyn Alphonso, a partner at Anchor, in recognition of our continued growth there.”
The property’s ASC will be operated by The ENT Institute, a multi-location specialty practice providing clinical ear, nose and throat services, specialty surgical procedures, and post-surgical physical therapy throughout broader Georgia. Other tenancy at the building includes, Eye Consultants of Atlanta and Georgia Dermatology Partners, both of which are multi-location, best-in-class tenants that plan to utilize the property as hubs for future growth in the market. The combined tenancy creates a comprehensive tenant ecosystem that will lead to cross referrals over time and a critical mass of healthcare services for the Brookhaven community.
“The Brookhaven Medical Center II is the prototype investment that Anchor is actively pursuing in Atlanta and other strategic markets across the country,” shared Elliott Sellers, Vice President of Investments with Anchor Health Properties. “We are pleased to have acquired this property in an off market setting and execute on our investment strategy to acquire purpose-built medical office facilities leased to strong healthcare providers. The Atlanta market will continue to be a major focus for our firm in the coming months.”
The Transwestern Atlanta team provided leasing services for the building and sales advisory services for the transaction, led by Steve Hall, Kevin Markwordt, John Lopez, and Bo Stuart. Capital One provided debt financing. The Carlyle Group invested in the joint venture through its Carlyle Property Investors Fund, an open-ended real estate fund that invests in core-plus real estate properties in the United States.