Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a multi-tenant medical office building. The 28,434-square-foot building is located at 3401 Village Drive in Fayetteville, North Carolina. Stan Johnson Company’s Scott Briggs represented the seller, an individual investor and developer located in the state. The property was purchased for approximately $10.0 million by an out-of-state private fund. The cap rate was not disclosed.
“This offering garnered significant interest from many different investors considering 85 percent of the rent generated from the property is funded by a government entity with significant credit quality and is well-insulated from many of the broader macroeconomic movements that private credits are susceptible to,” said Briggs, Senior Director and Partner in Stan Johnson Company’s Tulsa, Oklahoma headquarters. “The federal government carries an AA+ credit rating and the State of North Carolina is one of 13 states that carries an AAA rating by Standard and Poor’s rating service.”
The three-story property features both medical and traditional office space and is fully leased to three tenants including the U.S. General Services Administration for an initial 15-year term, the State of North Carolina Department of Revenue for an initial 10-year term, and Piedmont Physical Therapy Specialists for an initial term of seven years. It was built in 2017 and sits on 1.29 acres in a dense medical and office district immediately adjacent to the Cape Fear Valley Medical Center, a 200-bed acute care facility that treats more than 1.0 million patients annually.
“Through Stan Johnson Company’s proprietary marketing and sales process, we were able to generate a competitive bidding environment that drove pricing for our client and resulted in many strong offers from various capital sources. It was by-the-book and an all-around success from start to finish,” Briggs added.