A rendering of the new-construction medical office building planned at the corner of Bell Creek Road and Autumn Park Way in Hanover County (Renderings by PSH+, courtesy Flagship Healthcare Properties)
After picking up several existing medical office buildings in the region, an out-of-town REIT has locked down a site for a new-construction project.
Charlotte-based Flagship Healthcare Properties recently spent $1 million to acquire a 7.5-acre site in the Mechanicsville area of Hanover County, where the company is planning to build a medical office building
Plans call for a 38,000-square-foot, two-story office at the corner of Bell Creek Road and Autumn Park Way that would be occupied by outpatient medical providers.
The project is expected to cost more than $19 million, and Flagship says the planned building will fill a gap in medical office options in that part of town, according to spokeswoman Savannah Scott.
“The completed project will be a Class A off-campus medical office building of a quality not currently present in the Mechanicsville submarket. It will offer medical practices and hospital systems a Class A option in the submarket, similar to what they likely utilize in other Richmond submarkets,” Scott said in an email.
The project is expected to break ground at the end of 2024 or early 2025, and would be anticipated to be completed a year after the start of construction. PSH+ is the architect on the project.
Flagship said the project is envisioned as the first of a two-phase development. A second 35,000-square-foot office building is planned for the same acreage. The two-building development would be called Bell Creek Medical Pavilion.
Flagship has plans to build up to two office buildings on its recently acquired 7.5-acre site in Hanover.
The company acquired the property in mid-March through its Flagship Healthcare Trust, which is managed and owned by Flagship. The undeveloped Mechanicsville land was most recently assessed by the county at $1.1 million.
The seller was Neuro MOB II, LLC, an entity tied to Chesterfield-based developer Emerson Cos.
Malcolm Randolph and Frank Hargrove of Colliers handled the deal on the buyer side and have also been tapped to handle leasing for the development.
The Bell Creek land deal follows Flagship’s acquisition of a nearby 15,000-square-feet medical office building at 7521 Right Flank Road.
The company’s first acquisition in the area was the 2020 purchase of the Virginia Physicians For Women office at 1775 Lake Harley Drive in Prince George County. In 2022, it bought the Blair Building medical office in the Forest Office Park near Henrico Doctors’ Hospital.
As of earlier this year, Flagship owned more than 100 properties located in 11 states and managed more than 300 properties in 19 states.