MedProperties Purchases Two-State Healthcare Site

By Eric Althoff

OHIO AND WEST VIRGINIAReal estate firm MedProperties Realty Advisors has acquired two healthcare spaces in the neighboring communities of Belpre, Ohio, and Vienna, W.V.—which are separated by the Ohio River.  Both properties are master-leased to the West Virginia University Health System.

The West Virginia property encompasses a 92,212-square-foot medical office building (MOB), with the neighboring two-building site in Ohio boasting 20,000 square feet in total.  Tenants at the Vienna, W.V., property—which is 100 percent occupied—include Mid-Ohio Valley Medical Group (MOVMG), DaVita and Mountain States Medical Specialists.

MOVMG was acquired by West Virginia University (WVU) at the same time MedProperties took over the MOB space in West Virginia. 

The two-story Vienna MOB is host to specialized medical services for family medicine, orthopedics, ear, nose and throat specialists, and dialysis.  The property, originally built in 1982, was renovated in 2009 and expanded in 2012.

The Belpre properties offer CT examinations and MRI services in addition to family medicine.  The two buildings on that site were built in 1960 and renovated several times over the last 15 years.

“The acquisitions, which were part of MedProperties’ third discretionary fund, were made on an off-market basis at what we believe to be an attractive purchase price in light of the 15-year master lease with WVU,” said Darryl Freling, managing principal of MedProperties Realty Advisors. “WVU has nine hospitals, 18,000 employees, a high Moody’s investment grade credit rating and an excellent reputation.”

Added Jon Foulger, MedProperties’ director of acquisitions: “Because this is an off-market transaction with a favorable purchase price, we expect these properties will provide both attractive cash flow returns as well as material capital appreciation.”

Foulger said that the Belpre ambulatory surgery center (ASC), a joint venture between a WVU-affiliated hospital and local physicians, has seen consistently high-rent coverage.