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Starwood sells UM-leased medical office building in Plantation for $46M

Charlottesville, Virginia-based Anchor Health Properties paid $475 psf for the building

Anchor Health’s Ben Ochs and Starwood's Barry Sternlicht with 8100 Southwest 10th Street (Anchor Health Properties, Getty, Colliers)
Anchor Health’s Ben Ochs and Starwood's Barry Sternlicht with 8100 Southwest 10th Street (Anchor Health Properties, Getty, Colliers)

Starwood Capital Group sold a Plantation medical office building fully leased to the University of Miami Health System for $45.5 million.

An affiliate of Anchor Medical Properties, a Charlottesville, Virginia-based real estate investment firm, bought Crossroads III, a 101,851-square-foot Class A medical office building at 8100 Southwest 10th Street, records show. The deal breaks down to $475 a square foot.

A Colliers team led by Mark Rubin and Bastian Laggerbauer, and an Avison Young team led by Justin Cope and Greg Martin represented Anchor in the off-market deal, according to a press release.

An affiliate of Starwood, the private investment behemoth based in Miami Beach and Greenwich, Connecticut, led by Chairman and CEO Barry Sternlicht, paid $20.2 million for the property in 2015, records show.

Completed in 2000, Crossroads III is leased long-term to the University of Miami Health System, which plans to expand its operations by adding a 15,000-square-foot radiotherapy center on the property, the release states.

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Anchor Health Properties, led by CEO and managing partner Ben Ochs, focuses exclusively on medical facilities, with more than $1 billion of completed development projects, more than 7.5 million square feet under management, and more than $2 billion invested in health care facilities, the release states.

In a statement, Rubin said that medical office buildings are fetching asking rents averaging $32.28 a square foot due to a tight supply and limited new construction. Investors are bullish for medical office buildings because the asset class has proven to be resilient, high-yielding, and recession-proof since the start of the pandemic, Rubin said.

In May, a partnership between Deerfield Beach-based Geneva Group and Syosset, New York-based VM Petro paid $15 million for Regal Medical Center, a medical office complex in Royal Palm Beach.

A month earlier, Toronto-based NorthWest Healthcare Properties REIT acquired Beach House Center for Recovery, a 107-bed alcohol and substance abuse treatment facility in Juno Beach, for $25.4 million. The deal was part of a $600 million national portfolio sale.

Also in April, Miami real estate investor Antonio “Tony” Hernandez paid $12.7 million for Fontainebleau Park Office Plaza, a two-story office building in west Miami-Dade County. The property is primarily leased to medical tenants.

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