DENVER – November 27, 2018 – Broe Real Estate Group (BREG), a private real estate investment firm headquartered in Denver, CO, confirmed the sale of a 121,789 square foot medical pavilion located at 9601 Blackwell Road in Rockville, MD.
Constructed in 2000, Shady Grove Medical Pavilion was acquired in a 2014 auction as a distressed asset. For the past four years, the BREG team invested in substantial capital improvements and implemented an active management plan to convert the property from standard office zoning to its current medical office status. The asset repositioning strategy saw project occupancy rise from its vacant status at acquisition to a current occupancy rate of 72.5%.
“This project is representative of BREG’s deep value-add investment program,” says BREG CEO Doug Wells. “Our team successfully repositioned the property and created a durable cash flow stream by executing long-term leases with a diversified roster of medical tenants. This disposition allows us to realize the material value created from our project business plan and redeploy our investment capital into new repositioning opportunities.”
The buyer of the Rockville property is Texas-based Caddis Healthcare Real Estate who acquired Shady Grove Medical Pavilion as a strategic addition to its real estate holdings. “Shady Grove Medical Pavilion is a high quality asset that lays out well for a multi-tenant strategy,” said Caddis CEO Jason Signor. “The property is a great investment for Caddis, it’s already home to a strong medical tenant base, and we have the opportunity to unlock additional upside by leasing up the remaining vacant space in the building.”
Chris Bodnar, Lee Asher and Shane Seitz from CBRE Healthcare Capital Markets listed the property for sale. “The strong anchor tenancy by Shady Grove Fertility, attractive demographics and its prominent, high-traffic location drove significant demand for the offering,” noted Chris Bodnar, CBRE Vice Chairman. Shady Grove Medical Pavilion is located adjacent to both the Adventist Healthcare Shady Grove Medical Center and the Johns Hopkins University Montgomery County Campus.
About Broe Real Estate Group
Broe Real Estate Group, an affiliate of The Broe Group, acquires, develops and manages commercial real estate assets. Affiliated companies own and manage office and industrial properties, medical office buildings and multi-family communities across the country, including premier assets in many of the most desirable markets. The Broe Group has a 50-year history of value-add real estate investing in Colorado and across the United States. We improve value though the implementation of focused business plans that increase cash flow and create stable income streams. For more information, visit broerealestate.com.
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