WASHINGTON, DC -- Asset Capital Corporation, Inc. announced today that it has completed the acquisition of a portfolio of four medical office buildings located in Columbia, Frederick and Timonium, Maryland for approximately $23.7 million.
The Maryland medical office portfolio consists of four high-quality, medical office buildings comprising approximately 220,000 square feet. The transaction included the purchase of the Timonium Medical Center, the Frederick Regional Medical Center, and Knoll North I and Knoll North II in Columbia, Maryland.
The Timonium Medical Center is a 27,675 square foot office building located in Timonium, a northern suburb of Baltimore in the heart of Baltimore County. The property provides easy access to residents of the I-83 corridor including Hunt Valley, Timonium and Towson.
The Frederick Regional Medical Center is a 31,955 square foot office building located in the City of Frederick. The City of Frederick is the second-largest city in Maryland and has experienced significant population growth in the past ten years.
With 92,313 square feet and 67,958 square feet, respectively, Knoll North I and II are located in the heart of Columbia, Maryland near the intersection of Routes 29 and 175. Columbia is strategically located between Baltimore and Washington, D.C. with residents who work locally as well as commute to Baltimore and Washington.
Asset Capital purchased this portfolio from a large, Mid-Atlantic healthcare provider that had not actively managed or marketed the buildings in recent years. As a result, Asset Capital sees a significant opportunity to improve the occupancy and performance of this portfolio. The buildings are all well located and were specifically built-out for medical and medical- related purposes making them particularly attractive to the medical community.
Bill LeBlanc, Asset Capital's President and Chief Operating Officer, commented, "This acquisition, with passive corporate owners and significant potential for repositioning, is a perfect example of the assets our company seeks to acquire. In addition, our experience with other medical office buildings increases our ability to focus on the special needs of these tenants. The initial response from the medical office tenants and leasing brokerage community representing them has been very strong. We believe there is the potential for significant upside in cash flow and value on this acquisition."
At closing the portfolio was approximately 30% occupied on short-term leases. Asset Capital has already begun a capital improvement program at the facilities and expects to spend approximately $5 to $7 million on upgrades and building improvements to attract quality medical office tenants and stabilize the occupancy throughout the portfolio.
Building locations are as follows:
* Knoll North I & II -- 5450 & 5500 Knoll North Drive, Columbia, MD
21045
* Frederick Regional Medical Center -- 110 Baughman's Lane, Frederick,
MD 21702
* Timonium Medical Center -- 2205 York Road, Timonium, MD 21093
Safe Harbor Statement
This release may contain forward-looking statements that relate to future events or performance. These statements reflect Asset Capital's current expectations, and Asset Capital does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond Asset Capital's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, changes in interest rates, conditions in the real estate industry, and the state of the general economy and the local economy in which our properties are located.
About Asset Capital Corporation, Inc.
Asset Capital Corporation, Inc. is a fully-integrated real estate operating company focused on opportunistically acquiring, redeveloping, financing, managing and disposing of commercial real estate properties located primarily in the greater metropolitan Washington, D.C. marketplace and its surrounding areas. The Company was formed to continue the investment strategy employed by the management team at its predecessor entities, which is to invest in commercial real estate properties and other commercial real estate- related assets that have the potential for a significant increase in operating cash flow from the company's hands-on management, leasing, engineering and capital improvement programs. Asset Capital focuses its investment activity in the geographic region including Washington, D.C., bounded by Baltimore, Maryland in the north, Richmond, Virginia in the southwest and Norfolk, Virginia in the southeast.
Source: Asset Capital Corporation, Inc.
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CONTACT: Barry Johnson, Chief Financial Officer of Asset Capital
Corporation, +1-301-656-2333
Web site: http://www.assetcapitalcorp.com/
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
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