Flagship Adds Kentucky MOB to Portfolio

By Eric Althoff

LEXINGTON, Ky.—Healthcare real estate development firm Flagship Healthcare Properties has purchased a 44,290-square-foot Class A medical office building (MOB), located at 1775 Alysheba Way in the university town of Lexington, Kentucky. As part of the transaction, Flagship has announced that the MOB will be jointly leased by the Lexington offices of Baptist Healthcare and Family Practice Associates.

Family Practice Associates of Lexington is occupying 18,000 square feet of the MOB, or approximately 47 percent of the available healthcare space in the building. Baptist Healthcare of Lexington is leasing out the remaining 26,290 square feet of space, which it will utilize as outpatient care space for the nearby Baptist Health Lexington hospital.

The MOB facility was initially constructed in 2004 and is located in Lexington’s Hamburg neighborhood, sited just a mile from Interstate 75.

Flagship, based in Charlotte, N.C., acquired the MOB in Lexington via its subsidiary real estate investment trust, called Flagship Healthcare Trust. First Horizon Bank provided financial backing for the sale, with Mark Rubin of Rubin Properties acting on the seller’s behalf.

“We really like the Lexington market and are happy to be able to expand our presence here,” said Gerald Quattlebaum, senior vice president of acquisitions for Flagship, regarding his firm’s purchase of the property at 1775 Alysheba Way. “We are fortunate to have been selected by Family Practice Associates for this transaction, and we look forward to working closely with them and Baptist Healthcare of Lexington as they continue to grow and meet their patients’ needs.”

Flagship manages over 4 million square feet of healthcare real estate at over 155 properties, and the company has also bought some 80 properties with a collective value of $675 million. Through its Flagship Healthcare Trust subsidiary, the company maintains an active interest in $400 million of healthcare real estate properties around the country.

Lexington, home to the University of Kentucky, is located 25 miles east of the state capital of Frankfort and 80 miles east of Louisville, where the annual Kentucky Derby takes place at the racetrack of Churchill Downs.