Remedy, Kayne Anderson Buy Atlanta MOB Portfolio

July 31, 2023

Medical Office Investment News Southeast

The two Class A facilities total more than 190,000 square feet.

Medical office buildings on the campus of Piedmont Fayette Hospital. Image courtesy of CBRE

Medical office buildings on the Piedmont Fayette Hospital campus. Image courtesy of CBRE

Remedy Medical Properties, in partnership with Kayne Anderson Capital Advisors, has acquired two medical office buildings totaling 192,363 square feet in Fayetteville, Ga. The joint venture purchased the buildings from Piedmont Healthcare through a 70-year ground lease with a 15-year extension option, public records show. CBRE represented the seller.

In January, the partnership also acquired a 13-property medical office portfolio spanning eight states. Montecito Medical Real Estate sold the assets for $131 million.

On the Piedmont Fayette Hospital campus

The portfolio comprises two buildings of 97,164 square feet and 100,800 square feet, respectively, built between 1996 and 2006 on approximately 5 acres on the Piedmont Fayette Hospital campus. The Class A, five-story facilities feature controlled access, five passenger elevators, 544 parking spots and share parking with the hospital as well, without a specific number of spaces allotted.

Piedmont Healthcare is the properties’ anchor tenant, occupying 63 percent of the space; the nonprofit has recently renewed its 15-year lease at both buildings. The portfolio was 97 percent leased at the time of sale to a mix of regional tenants, including Nephrology Consultants of Georgia and Women’s Specialists of Fayette, among others. Medical services provided include surgery, oncology, cardiology, orthopaedics, as well as pulmonary and critical care.

Located at 1265 and 1267 Highway 54, with exposure to West Lanier Avenue, the medical office buildings are 30 miles south of downtown Atlanta. Other medical providers in the surrounding area include Peachtree Medical Center, Piedmont Urgent Care, Synergy Primary Care and Southern Crescent Medical Clinic.

The CBRE team representing the seller included Vice Chairman Lee Asher, Senior Vice President Zack Holderman, First Vice President Jordan Selbiger, Senior Director Trent Jemmett and Director Cole Reethof.