Edge, a full-service commercial real estate firm with offices in Washington D.C., Virginia, Maryland and Pennsylvania, has brokered the sale of The Park at Snowden, a six-building, 22,400 square foot medical office portfolio in Fredericksburg, Virginia. The single-story, multi-tenanted asset, which was 95% leased and occupied at the time of the transaction, is located directly adjacent to Mary Washington Hospital. Edge’s Capital Markets team, led by Joe Friedman, Partner and Cristine Kleine, Senior Director, represented the seller, a Fredericksburg-based private partnership and procured the buyer, affiliates of Fernau LeBlanc based in Bethesda, Maryland. The sale was the completion of a 1031 Exchange investment for the Fernau LeBlanc affiliates.
Delivered in 2002, the buildings consist of 111, 121, 211, 301, 321 and 411 Park Hill Drive andare situated on a 1.73-acre site and surrounded by a free, surface parking lot, with private walk-up suite entrances on the ground level available to each tenant. The asset is leased to medical and healthcare users with representative tenants including the National Spine & Pain Centers, Fresenius Center, Integrated Health, Century Pediatrics, Fredericksburg Dental Associates and other medical practitioners affiliated with the Mary Washington Healthcare System. The assets comprise a portion of the larger business community within The Park at Snowden that contain 70,000 square feet of medical office space.
“The buyer acquired an extremely well-maintained medical office portfolio with a strong and diverse tenant mix comprised of high credit-worthy national service providers,” explained Joe Friedman, Partner of Capital Markets at Edge. “The assets are positioned less than 500 feet from Maryland Washington Hospital, an enduring demand driver with high barriers to entry. The asset is an ideal 1031 exchange investment based on its tenants that consistently renew leases and stay long-term because of the build-out investment, combined with a strategic location. The walk-up entrances are particularly beneficial to provide convenience and a dose of safety when dealing with COVID-19,” he added.
The medical office building sector represents approximately 10% of all commercial office space in the United States, with this specialty class expected to grow to respond to the emerging healthcare demands of an aging population. The pivot to increased outpatient care will further move patient visitations away from hospital settings and into off-site facilities.
Fredericksburg, located equidistant from both Washington, D.C. and Richmond, is positioned directly off Interstate 95 with major employers including the University of Mary Washington, Wegmans Food Markets, the City of Fredericksburg and Mary Washington Hospital.
“Fredericksburg’s population continues to expand as an outer/suburban community that offers affordability and proximity to the massive federal government and military presence along the Interstate 95 corridor and Washington, D.C.,” Friedman concluded.
This represents the fourth 1031 investment sale transaction completed by the Edge Capital Markets platform within the past 120 days with a cumulative volume exceeding $25 million. Earlier sales were completed for a 93,000 square foot commercial office building in Rockville, Maryland; a 37,000 square foot flex/warehouse building in Lanham, Maryland; and a 30,700 square foot warehouse/retail building in Silver Spring, Maryland.
Edge is a commercial real estate firm providing a full complement of advisory, leasing, investment sales, management, construction, property management and engineering services to clients throughout the Washington, D.C., Maryland, Northern Virginia, and Pennsylvania marketplaces. Founded in 2007, the company currently leases and manages more than 8.5 million square feet of commercial office, flex/office, industrial/warehouse, retail and mixed-use space. Visit www.edgecre.com.
