By Jack Stubbs
Healthcare Realty recently added another asset to its rapidly-growing portfolio of medical office space in the Puget Sound Region.
On Wednesday, November 1st, a two-parcel property containing the Eastview Professional Building in Bellevue sold for $12.7 million, according to public records filed with King County. Nashville, Tennessee-based Healthcare Realty is a publicly-traded Real Estate Investment Trust (REIT) that owns, manages, acquires and develops outpatient medical facilities throughout the United States. The seller was Bocek Family Limited Partnership II, an entity affiliated with real estate developer David Bocek Co., based in Bellevue. The deal was recorded on November 1st.
The first parcel, located at 1370 116th Ave. NE, is a 1.2-acre plot of land. The plot of land houses the Eastview Professional Building, a 23,992 square foot structure built in 1986. The two-story Class B medical office building was renovated in 2010, according to a property report on officespace.com. The second parcel, located adjacent to the medical office at 1320 116th Ave. NE, is a 3,187 square foot parcel of vacant land used for associated parking.
The office is currently occupied by a number of tenants in the medical industry, including Washington State Prosthodontics and Dental Implant Center; chiropractor Higher Health Spine and Sport; Orthotek Orthodontic Lab, a dental laboratory center and dentist Washington Jaw and Facial Surgery: Wei Guo MD,DMD; Bellevue Podiatry; and ophthalmologist David N. Drucker, MD.
The medical facility is located 1.5 miles to the northeast of downtown Bellevue and is less than two miles from access to Interstate-405, a prominent transit corridor. According to a property report written by Wallace Properties, the Eastview Professional Building’s location is one of its primary features, located in the heart of the healthcare district that serves Bellevue and the greater Eastside area.
There are several major hospitals all within a mile of the property, including the Overlake Hospital and Medical Center, the Kaiser Permanente Bellevue Medical Center, and Seattle Children’s Bellevue Clinic and Surgery Center. Some of the prominent property features include well-maintained property and common area features, on-site property management, and free on-site parking to meet a ratio of 4 stalls per 1,000 square feet, according to the property report.
Founded in 1992, Healthcare Realty was the first REIT to specialize in medical office buildings, and the company has since built a medical real estate portfolio affiliated with market-leading healthcare systems, according to the company’s web site. As of September 30th 2017, the company had a $5.2 billion enterprise value, and 197 properties—encapsulating 14.4 million square feet—owned in 26 states. The majority of the company’s properties are on the campus of or adjacent to these health systems. By acquiring properties from leading health systems, developers, physician groups and other private investors, the company strives to invest in outpatient facilities that are integral to a hospital’s long-term mission of providing healthcare services, according to the company’s web site.
The company has purchased a number of different medical office assets in the Puget Sound Region over the past 18 months, including the Meridian Medical Pavilion, a 3-story 70,000 square foot medical building in Northgate acquired in March 2016 for $38 million; Valley Professional Center North, a 4-story 47,000 square foot medical building in Renton acquired for $22 million; and the Talbot Professional Center, a 5-story 87,000 square foot medical campus in Renton acquired in September 2016 for $53 million.