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.
![310 Central Ave. in East Orange – Courtesy: Lee & Associates](https://re-nj.com/wp-content/uploads/2016/11/310Central_Ave_Multi_Blast.jpg)
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.