500 Grand Ave. in Englewood — Courtesy: Anchor Health Properties
By Joshua Burd
A joint venture has purchased a nearly 38,000-square-foot medical office building in Englewood as part of an expansion in the New York metropolitan area.
Anchor Health Properties, a Media, Pennsylvania-based developer and investor, said it partnered with Harrison Street to acquire the property at 500 Grand Ave. The company announced the acquisition Monday, noting that the building is 100 percent leased to users including doctors affiliated with Columbia Presbyterian Medical Center, Physical Medicine and Rehabilitation Center and Patient Care Associates.
Newmark’s Brian Schulz, Kevin Welsh, Jason Emrani and Maria Betancourt arranged the deal in tandem with Michael Greeley of the firm’s health care capital markets team and Robert Griffin, co-head of U.S. capital markets. Terms were not disclosed.
“As we focus on adding stabilized, high-quality, often off market assets with best-in-class regional tenancy to our owned asset portfolio, we remain excited about the opportunities to work with best-in-class regional providers, such as Physical Medicine and Rehabilitation Center and Patient Care Associates,” said James Schmid, chief investment officer and managing partner with Anchor. “With our full, robust pipeline as (medical office building) investors, we look for ways to expand access to ASC services to meet the growing demand for outpatient surgical procedures.
“We are excited to grow our portfolio in metro New York City with this strong asset and continue to look to optimize the value of the real estate in ways that create advantages both now and for the long term. New York City is a difficult market to source new medical investments in given limited inventory, and this asset represents one of the best opportunities for market expansion in recent years. Anchor is also proud to develop a relationship with Columbia Presbyterian Medical Center and its related physician groups over time.”
Built in 2006, the building also benefits from its proximity to Englewood Health, Hackensack University Medical Center and other academic and research hospitals in Manhattan. The property serves as Physical Medicine and Rehabilitation’s flagship location, according to a news release, while the multispecialty surgery center owned and operated by Patient Care Associates is governed by a Certificate of Need.
Additionally, Patient Care Associates has plans to expand into a fifth operating room, Anchor Health said. Justin Istenes of the firm’s development team will oversee the construction for the expansion.
All told, the building is home to services including otolaryngology, orthopedics, pain management, podiatry, reconstructive and cosmetic, urology, sports medicine, physical therapy, and imaging.
“We are excited about expanding our rapidly growing footprint in New York City, with a number of recent acquisitions,” said Albert Lord, who led the acquisition process on behalf of Anchor’s investments team. “This particular asset benefits from two best-in-class regional tenants with a long-term commitment to the location and a highly strategic ecosystem. We are looking forward to working closely with Physical Medicine and Rehabilitation Center and Patient Care Associates to provide high-quality health care services to the surrounding community.”
With the acquisition, Anchor Health now has more than 600,000 square feet under ownership or management in the New York area.
“Medical office buildings with stable and synergistic tenancy, especially those anchored by leading ambulatory surgery centers, are in high demand among institutional investors,” Greeley said. “We congratulate Anchor Health Properties and their partner, Harrison Street, on this strategic acquisition.”
Capital One provided asset-level debt financing.