By Joshua Burd
The parent company of East Orange General Hospital has sold and leased back a 68,000-square-foot building adjacent to the facility, in a deal arranged by Lee & Associates of New Jersey.
The operator, Prospect Medical Holdings sold the building at 310 Central Ave. for about $12 million, Lee & Associates said in a news release. The brokerage represented the buyer, Global Medical REIT, with Peter Rasmusson of the firm’s Elmwood Park office handling the deal.
Terms of Prospect Medical’s master lease were not disclosed. The 28-year-old building houses more than a dozen different medical practices, with the hospital utilizing significant portions of the building for its lab, wound center and dialysis center.
The Los Angeles-based operator completed its acquisition of East Orange General earlier this year, following a voluntary bankruptcy by the hospital last fall.
“There was a great deal of interest by our investors in this asset,” Rasmusson said in a prepared statement. “The sale underscores the robustness of the sale and leaseback market, especially in the medical sector.”
Global Medical is a Bethesda, Maryland-based health care facilities real estate investment trust, the news release said. The purchase is part of a string of acquisitions for the company totaling nearly $31 million, including medical buildings in South Dakota, Ohio and New Jersey, following a $150 million initial public offering in July.