Millennium Eye Care and Freehold Surgical Center at 500 West Main St. in Freehold — Courtesy: Physician Real Estate Capital Advisors
By Joshua Burd
A real estate investment trust has purchased a medical office building in Freehold for $8.2 million, according to a brokerage team with Physician Real Estate Capital Advisors.
In a news release, the firm said it represented a physician partnership in its sale of the Millennium Eye Care and Freehold Surgical Center at 500 West Main St. It also represented the undisclosed buyer, which focuses on health care real estate, noting that the 25,164 square-foot, three-tenant facility is adjacent to the 284-bed CentraState Medical Center.
In addition to marketing the property for sale, PRECAP also assisted in negotiating new, 10-year leases between the physician owners and their tenants, which were recently acquired.
“Prior to our firm’s involvement, the leases had minimal term remaining and did not include contractual rent growth,” said Scott Niedergang, managing principal and founder of PRECAP. “By negotiating new 10-year lease terms with annual rent escalations tied to the consumer price index, we were able to add significant value to the real estate and increase net proceeds upon sale for our physician clients.”
The brokerage team noted that the facility is 100 percent occupied by Millennium Eye Care, Freehold Surgical Center and Schubel Chiropractic. Prior to the sale, both Millennium Eye Care and Freehold Surgical Center were acquired by Prism Vision Group, a physician-led administrative service organization that partners with eye care practices throughout the U.S.