In late 2015, Baptist Eye Surgeons (BES) and Southeastern Retina Associates (SERA) contacted Anchor to evaluate the potential purchase and redevelopment of their existing medical office building, which would otherwise be torn down. The building was in southern Knoxville, TN on the site of a former hospital that was shuttered and in the process of being redeveloped into a new mixed-use development.
On behalf of an entity formed between BES and SERA, Anchor pursued the purchase of the building they currently occupied and engaged a team of professionals to evaluate a redevelopment of the property. Ultimately, the purchase of the existing MOB was abandoned and Anchor continued a comprehensive search for alternative properties for BES and SERA. It became apparent that once the purchase of the existing building fell through, BES and SERA’s current landlord wanted them out quickly, adding pressure to an already difficult landlord-tenant relationship. It was important that both practices remain together and in a narrow geographic area near their old offices.
Anchor exhausted every available option to meet the practices’ needs and find a solution that would leave them accessible to former patients while also leaving them highly visible to attract a new patient base as well. Anchor not only helped navigate a tenuous tenant-landlord relationship for both practices, but successfully identified a suitable alternative and secured the purchase of an 81,000 square-foot retail center in the desired service area.
The partnership closed on the property, Chapman Commons, located along Chapman Highway in south Knoxville in March 2017 and construction for both BES and SERA began promptly following. Chapman Commons, which was 50 percent vacant at the time of purchase, has seen occupancy increase to around 75 percent with the addition of BES and SERA. Anchor has successfully led the lease-up of two of the remaining three vacant suites, and Chapman Commons is projected to be at 97 percent occupancy by Spring 2018, after a fitness center and additional complimentary tenants open their doors later this year.
As owners of their own real estate, BES and SERA can now focus on their number one goal, providing excellent service and care to patients in the Knoxville area, while controlling their own real estate destiny.
Anchor Health Properties will continue to manage and lease Chapman Commons and is optimistic about the future vision for health and wellness focused tenants in the center.