Nearly 42,000 Square Foot Off Market Transaction Effectively Expands Anchor Health Properties’ Presence in the Seattle MSA
Actively growing its owned and managed portfolio in the Western US, Anchor has recently closed on the off market acquisition of a multi-story, 41,680 square foot, institutional quality medical office building located in the Poulsbo submarket of Seattle, Washington. The multi-tenant MOB was acquired through a joint venture between Anchor’s co-managed equity fund, Chestnut Healthcare Fund II, and funds managed by global investment firm Carlyle (NASDAQ: CG).
The Peninsula Medical Building, offering a strategic downtown location at 19917 Seventh Avenue, Northeast, was originally constructed for the US Navy in 1994 and has been modernized overtime, including interior common area renovations, a new HVAC system, new roof, and elevator modernization efforts. The asset also features ample on-site parking providing convenient access to the building for patients.
The 100% leased facility is occupied by a multi-specialty tenant ecosystem fostering strong cross-referrals within the building. Services at this location include oncology, radiology, primary care, behavioral health, pharmacy, dermatology, pulmonology, and sleep medicine. A linear accelerator is also located on the first floor and features a state issued Certificate of Need (CON).
The asset is anchored by Seattle Cancer Care Alliance (Moody’s A2), the leading comprehensive cancer center on the West Coast, and CommonSpirit Health (Moody’s Baa1), one of the largest health systems in the United States. The two anchor tenants are joined by several other best in class local medical practices. Seattle Cancer Care Alliance hand selected this location and is in the process of expanding its presence in the building.
“Seattle is one of our fastest growing target markets across the country, and we are excited to grow along with it as physician groups seek to capitalize on their real estate to build stronger practices and better serve their patients,” shared James Schmid, Chief Investment Officer and Managing Partner with Anchor. “Our continued success with sourcing and executing off market transactions speaks highly to the relationships our investment team has built with local brokers and providers. We have had an exceptional year and expect to reach nearly $900 million in transactions by year’s end demonstrating the strength of our investment strategy and the experience of our team. This is our fourth transaction in the Seattle market this year - a market notoriously limited in annual transaction volume in our sector. Our team has done a tremendous job building local market relationships there, building out platform operations, and executing on new off market investment opportunities where we own, manage, and lease going forward.”
Leading the acquisition process, Anchor’s Vice President of Investments & Partner, Elliott Sellers, also noted, “We continue to identify excellent off market opportunities to meet the growing demand for high quality medical office buildings and are supported by the confidence of our capital partners and our investment team’s robust network of industry and deal sourcing relationships. The Peninsula Medical Building fits squarely within our investment strategy to acquire and renovate core medical office facilities as part of our national portfolio of premier healthcare real estate assets. We are incredibly fortunate to have strong ties to the Seattle brokerage community that trust our ability to execute in a timely and off market fashion.”
On behalf of the Seller, Nezam Tooloee, added, “We are pleased with the experience and confident that we are leaving the property and the tenants in very good hands with Anchor Health Properties.”
Paul Carr, Senior Vice President with CBRE, provided sales advisory services to the buyer. Truist provided debt financing services. As the new owner of the facility, Anchor Health Properties will provide go forward asset, and property management services at this location.