Medical Investment
Acquisition Date: Q2 2021
Status: Stabilized
$227k
$478k
NOI Growth
$3.0M
$6.8M
Value Growth
70%
100%
Occupancy Growth
Opportunity
3625 Braselton is a 26,075 square foot medical office property located in Dacula, GA, an affluent Atlanta submarket characterized by high household incomes and home prices. In early 2021, RGRE had been retained as a leasing broker for the property by its ownership, a TIC comprised of more than twenty members. The competing priorities of the many TIC members presented leasing and ownership challenges, providing an opportunity to acquire the asset at a favorable basis. Further, RGRE’s leasing work had facilitated relationships with the building’s existing and prospective tenants, providing a clear path to stabilization.
Execution
During the contract period, the RGRE leasing team was able to execute LOI’s with multiple new tenants and secure lease extensions with existing tenants. Among the newly-signed tenants was North Georgia Healthcare Systems (Fitch:A), a well established healthcare system supported by five hospital campuses, numerous affiliate locations and $353M in revenue (2023). The property was stabilized within twelve months and was recapitalized in October of 2022 at a valuation of $5.4M, providing a gross return on equity of 1.71x. The property is currently 100% occupied with an implied value of $6.8M (assumes a 7% cap on in place NOI).