Flagship Adds Additional North Carolina Property to Portfolio

By Eric Althoff

HICKORY, N.C.—Healthcare real estate development firm Flagship Healthcare Properties has acquired a Class A medical office building and ambulatory surgery center (ASC) at 214 18th Street SE in Hickory, the firm announced recently. The 45,390-square-foot property has been fully leased to healthcare operators OrthoCarolina and Frye Surgery Center.

OrthoCarolina has leased 32,522 square feet of the Hickory property, representing 72 percent of the total healthcare space. The remaining 28 percent—12,868 square feet—will be utilized by the Frye Surgery Center.

“We are pleased to acquire this first-class facility that houses two prominent healthcare providers,” Gerald Quattlebaum, senior vice president of acquisitions for Flagship, said in a statement regarding the buy. “We have a long-standing relationship with OrthoCarolina and have a tremendous amount of respect and admiration for what they do. We look forward to working with both tenants and expanding those relationships in the Hickory market.”

At the Hickory property, OrthoCarolina will offer patients physical therapy, an urgent care facility, as well as an MRI clinic. The healthcare firm’s offices will also be set up to deal with hand surgery, joint replacement, spine care, physiatry and sports medicine.

The Frye Surgery Center, which operates as a department of Frye Regional Medical Center, falls under the umbrella of Duke LifePoint Healthcare. At the Hickory ASC, the Frye Surgery Center will offer services at four surgical suites, with specialty care focused on cardiothoracic, neurosurgery, vascular, oncology, oculoplasty, dental, orthopedic, ear nose and throat, plastic and reconstructive, urological, general, gynecology and podiatry.

Flagship bought the Hickory facility under the aegis of its real estate investment fund, Flagship Healthcare Trust, through whom the company has also purchased other healthcare properties in North Carolina within the past year. Flagship has announced it is providing property and asset management services as part of the deal, which was financed by First National Bank.

“We are honored to be the real estate partner chosen by the sellers, and warmly welcome these new investors to the Flagship REIT family,” Charles Campbell, CEO and co-managing partner with Flagship, said of the sale.