Newmark Capital Markets has announced the sale of a 32,987-square-foot, two-story medical office building for $9.75 million in Delray Beach, Florida.
The Class A building was built in 2005 and is 75 percent leased. ASC, an affiliate of Tenet Health, occupies approximately 10,000 square feet. Other tenants include South Palm Gastro Health, Total Vein and Skin Dermatology and the South Florida Gastro Association. The building is located at 4675 Linton Blvd., across from Delray Medical Center, an award-winning hospital that is driving the growth of the medical office market in the area.
Newmark Capital Markets Executive Managing Directors Adam Greenberg and Michael Lapointe and Managing Director Michael Lohmann represented the owner/seller, Delray Outpatient Properties LLC. The buyer is Flagler Investment Healthcare LLC, a vertically integrated data, solution and performance healthcare real estate and private equity company with several assets in the area.
“Medical office buildings continue to be sound investments because doctors prefer not to relocate, making for stable, long-term tenants,” said Lohmann. “Additionally, we are seeing providers from hospitals opting for more affordable outpatient facilities, including physician offices, diagnostic laboratories and surgical centers. With the proximity to Delray Medical Center, we anticipate continued growth of the medical office market in this corridor.”
The sale comes after the same Newmark Capital Markets team brokered the $5 million sale of a 3-acre parcel adjacent to the medical office building in January. The site is one of the last developable tracts of land of its size in the submarket and plans to be developed into a medical facility.
According to Newmark Research’s 2018 Global Healthcare Outlook report, other factors impacting construction of medical office are pending tariffs on steel, lack of skilled labor and construction booms throughout the U.S. The full report is available for download here.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.