In separate multimillion-dollar sales, two out-of-town firms recently snagged sizeable real estate assets in Henrico County.
New York-based American Realty Capital Healthcare Trust II paid $20.7 million to purchase the Advanced Orthopaedics building at 7858 Shrader Road. The sale closed April 9 and is the highest-priced commercial real estate deal the county has seen so far this year.
Advanced Orthopaedics occupies the entire 60,000-square-foot building, which was built in 2002, according to the company’s CEO John Bauman.
Bauman said the change in ownership will not affect the medical facility’s daily operations. Advanced Orthopaedics has a triple net lease on the building, meaning it covers the rent, utilities, taxes and much of the upkeep.
In 2007 the property’s original group of owners sold it for $16.25 million to another REIT, which was the seller in this latest deal.
According to county records, the property’s most recently assessed value was $13.9 million.
American Realty Capital Healthcare Trust II was formed in late 2012 and became an official REIT at the end of 2013. It currently owns 118 assets encompassing 6.3 million square feet throughout the country, according to its website. It has purchased only one other Virginia property so far, a $25 million medical building in Hampton.
Other REITs controlled by its parent company, American Realty Capital, have made some past purchases in the Richmond area. The most recent was the Hyatt Place Richmond Innsbrook hotel. American Realty has also bought two Red Lobster restaurant buildings and the Virginia Urology building.
Four miles west of the Shrader Road property, a Charlottesville firm has made its second real estate acquisition in the Richmond market in less than a year.
Commonwealth Assisted Living purchased the 29,000-square-foot senior living facility at 2400 Gaskins Road for $4.6 million on April 30.
The 48-unit facility was formerly operated as Meadow Glen Assisted Living and has been rebranded by the new owner as Commonwealth Assisted Living at the West End.
The company made its entrance into the local market late last year with the purchase of a facility in Chesterfield County.
“We’re always looking for communities in Virginia; we have 21 locations around the state,” CEO Richard Brewer said. “We look for opportunities where we believe we can add value by renovating and expanding the community and adding memory care.”
Brewer said the company has plans to spend more than $5 million to renovate the 15-year-old Gaskins Road property, which is fully occupied.
The expansion will involve increasing the total number of beds to 89, including a new 32-bed wing for residents with Alzheimer’s disease and dementia.
After the expansion, the 5-acre facility is expected to come in at about 50,000 square feet, and the staff size should jump from around 45 to 70 employees.
Winks Snowa Architects is doing design work for the project, and Capstone Contracting is providing general contracting services during the pre-construction stage.
The renovations are likely to start within the next 60 days, Brewer said, and the full build-out should take about a year and a half.
Founded 14 years ago, Commonwealth Assisted Living has grown entirely through acquisitions. Brewer said the company will continue seeking new facilities to purchase in the Richmond area.
“There is a lot of development going on, and it’s all to keep up with the aging of our population,” Brewer said. “But our product is really our people, and we stand out from the competition.”