Hines Adds DC Assets to Portfolio

The Rockville facility is almost entirely leased to Children’s National. Image courtesy of CommercialEdge

Hines has acquired two medical office buildings in Pikesville, Md., and Rockville, Md., through its flagship commingled U.S. core plus investment vehicle, Hines U.S. Property Partners Fund. Harrison Street sold the assets totaling 200,000 square feet with the assistance of Newmark.

The deal marks the fund’s first investment in health-care assets and its first acquisition in the Washington, D.C., metro area. HUSPP’s recent purchases, worth $200 million, also involved three industrial properties amounting to some 735,000 square feet.

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While still focusing on the industrial, office and mixed-use sectors, Hines will continue to invest in other alternative assets through the fund, such as medical and self storage facilities, to diversify its portfolio.

Newmark Executive Managing Director Ben Appel, Senior Managing Directors Jay Miele, John Nero and Michael Greeley, alongside Executive Managing Director Jud Ryan, represented the seller.

Two Maryland medical facilities

LifeBridge Health anchors the Pikesville clinic. Image courtesy of CommercialEdge

Both Maryland facilities previously traded in 2013 as part of a $303.4 million portfolio transaction, CommercialEdge data shows. In 2019, the two medical office buildings were refinanced for a combined $60.6 million in a $369.3 million portfolio deal originated by John Hancock.

The Class A, Rockville facility came online in 1999 on 4.6 acres. The four-story, 66,000-square-foot building is almost entirely leased by Children’s National, which has been a tenant since the property’s completion.

Located at 9850 Key W. Ave., the asset is 21 miles northwest of Washington D.C. and some 43 miles from Baltimore. Other medical facilities in the surrounding area include USA Fibroid Centers, Adventist HealthCare Shady Grove Medical Center and Maple Springs Medical Center.

The Pikesville property is a five-story, Class A building that came online in 1996 on 6.1 acres. LifeBridge Health anchors this multi-tenant, 131,545-square-foot clinic.

The medical facility is at 1838 Greene Tree Road, near Interstate 695 and 15 miles from downtown Baltimore. The property is less than 5 miles from Northwest Hospital; other health-care providers in the area include Greater Baltimore Medical Center, St. Joseph Medical Group and Community Health Center.