AW Property Buys Georgia Medical Office Portfolio

550 Redmond Road. Image courtesy of AW Property Co.

AW Property Co. has purchased a nine-building, 350,000-square-foot portfolio of medical office buildings located around Atlanta and Rome, Ga. Public records show the previous owner was Healthcare Realty Trust Inc. Ally Bank financed the transaction.

AW acquired the properties through its Medical Office Fund IV, a $300 million discretionary core-plus investment vehicle targeting medical offices in markets throughout the Southeast. The firm had previously used the fund to pick up a two-building, 123,953-square-foot medical office campus in Raleigh, N.C.

The portfolio’s profile

The buildings within the portfolio are primarily located on-campus or adjacent to hospitals operated by Advent Health and Piedmont Health. Anchored by Harbin Clinic and First Georgia Physicians Group, the facilities were 90 percent leased at the time of sale. Other tenants include Piedmont, Northside Hospital and Fresenius Medical Care.

One asset in the traded portfolio, located at 550 Redmond Road in Rome, is home to a neurological disorder treatment facility operated by Harbin.

Medical office sales in metro Atlanta

Despite the uncertainty surrounding the office sector, medical offices have remained a stable and lucrative investment opportunity, accounting for $2.9 billion in transactions in the first half of 2022, according to a report from Brown Gibbons Lang & Co.

Atlanta has been no stranger to such trends, seeing $650 million in transactions in the four quarters to Q2 2022, according to a third quarter report from Colliers. Recent MOB transactions in the metro include Stonemont Financial Group’s purchase of an 86,000-square-foot Class A facility in Alpharetta, Ga., and Lincoln Advisors’ acquisition of a 149,202-square-foot facility in Atlanta.