A medical office space located adjacent to CentraState Medical Center in Freehold recently changed hands for $8.2 million.
Physician Real Estate Capital Advisors (PRECAP) announced the closing of the sale of 500 W. Main St. June 2, in which the Chicago-based firm represented both the seller — a physician partnership — and the buyer — a publicly registered real estate investment trust with a focus on acquiring a diversified health care real estate portfolio.
The 25,164-square-foot facility is 100% occupied by three tenants: Millennium Eye Care, Freehold Surgical Center and Schubel Chiropractic.
Before the sale, in April, Millennium Eye Care and Freehold Surgical Center were acquired by physician-led administrative service organization Prism Vision Group. Millennium has six locations in the Garden State, including the Freehold Ambulatory Surgery Center.
On top of executing the marketing and the sale of the site, PRECAP said it also negotiated new, 10-year leases with annual rent escalations between the physician-owners and the new Prism Vision-affiliated tenants.
In a statement, Managing Principal and Founder Scott Niedergang said that before PRECAP’s involvement at the property, the tenants’ leases had minimal time remaining and did not have rent growth baked into the arrangements.
“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,” Niedergang said.
Dr. Steven Mishkin, managing member of the seller, added that Niedergang “carried us through the [sale] process step-by-step,” leading with an invaluable knowledge of the health care real estate market.