Carlyle Group JV Buys Atlanta-Area MOB

The Pavilion at Windy Hill. Image courtesy of Anchor Health Properties

Anchor Health Properties has teamed up with global investment firm The Carlyle Group to acquire The Pavilion at Windy Hill, a Class B medical office building totaling 90,379 square feet in Marietta, Ga.

The off-market deal that closed through Anchor’s $100 million Chestnut Healthcare Fund II brings the company’s Georgia portfolio to 17 properties, with nearly 800,000 square feet of owned and managed assets.

In the first half of the year, seven medical office properties totaling 653,868 square feet traded in the Atlanta market, according to CommercialEdge data. The transactions had an average sale price of $204.47 per square foot, with the average total sale price slightly above $20 million.

The buyer turned to Capital One to provide acquisition financing and to Transwestern to facilitate the transaction. The brokerage team included Senior Managing Directors Steve Hall and Kevin Markwordt. Anchor also selected Transwestern to provide leasing services for The Pavilion at Windy Hill.

Anchor Health Properties is an active investor in the medical office sector. Recently, the company has teamed up with Harrison Street to purchas Westlake Professional Center, a 30,000-square-foot outpatient facility in Westlake Village, Calif. In June, the same partnership paid $45.5 million for Crossroads III, a medical office building totaling 95,777 square feet in Plantation, Fla.

A suburban Atlanta MOB

The multi-tenant property at 2550 Windy Hill Road SE on the Wellstar Windy Hill Hospital campus includes two ambulatory surgery centers (ASC). With three operating rooms, one ASC is jointly used by Resurgens Orthopedics, the state’s most extensive orthopedic practice, as well as United Surgical Partners International, which has the largest ambulatory network nationwide, with more than 440 ambulatory surgery centers and surgical hospitals, according to their website. Meanwhile, the second ASC is run by GI Specialists of Georgia, a gastroenterology practice.

Built in 1973, the three-story building has 30,000-square-foot floorplates and a 209-car parking area with a ratio of 2.30 spaces per 1,000 square feet, according to CommercialEdge data. While the property was most recently updated in 2020, the new owner plans to implement a capital improvement plan to reposition the facility, bringing it to a Class A standard.

The Pavilion at Windy Hill is less than half a mile from Interstate 75, within 2 miles of Interstate 285 and downtown Atlanta is roughly 13 miles southeast.