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Flagship Healthcare Properties looks to expand portfolio of medical office buildings in Florida

Maitland Medical Center is anchored by Maitland Surgery Center and is fully leased with four tenants.
Maitland Medical Center is anchored by Maitland Surgery Center and is fully leased with four tenants. (Arrow Studio LLC/Flagship Healthcare Properties)

Charlotte, North Carolina-based Flagship Healthcare Properties just acquired a two-story medical office building in Maitland as part of a larger portfolio deal throughout the southern and mid-Atlantic United States.

The outpatient health care real estate firm paid $17 million for the 43,885-square-foot Maitland Medical Center at 790 Concourse Parkway South. The deal breaks down to about $387 per square foot.

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As part of the deal the company also purchased medical offices in Montgomery, Alabama and Williamsburg, Virginia. The property in Alabama is a two-story, 27,000-square foot building near the center of the city. In Williamsburg, Flagship, entered the market and bought a medical office building and separate, free-standing outpatient surgery center.

Gerald Quattlebaum, Flagship’s executive vice president of acquisitions, told GrowthSpotter the Maitland purchase falls in line with greater overall expansion plans by the company to increase its portfolio in Florida.

“We started Charlotte many years ago,” he said. “Most of our portfolio is in and out of the Carolina’s and so we’re trying to spread our geographic footprint into dynamic health care markets like Orlando.”

The firm has already hired some local architects and is still looking to fill multiple positions.

The firm is targeting markets with proximity to large hospital systems and local health care providers, as well as assets that have outpatient surgery centers like the one in Maitland, he said.

The building sold 100% leased to tenants including Maitland Surgery Center, which is part of Surgical Care Affiliates, a network of surgeons with more than 210 surgical facilities. Other tenants include Orlando Health and physicians that specialize in pediatric services.

Quattlebaum said many of the original tenants helped build the facility in 2010, and were able to secure and renew long-term leases in the building before the sale.

Andrew Larwood and Allen Inman of Capital Real Estate Group represented the sellers.

Flagship opened an office in Tampa several years ago and has since also purchased a location in The Villages. At the time of the interview with GrowthSpotter, Quattlebaum said he was in the midst of closing a sale for a medical facility in Panama City, Florida.

Over the next several years, he adds, Flagship anticipates to have somewhere around 22% to 25% of its assets in Florida.

Trelago developer Battaglia Group has another developer under contract for one of the commercial lots within the large master-planned community in Maitland.

“There’s a good balance of health care systems in [greater] Orlando,” Quattlebaum said. “We’re looking at sites in central, northeast, southwest and northwest Florida.”

Records show Flagship financed the deal with a $10.2 million loan from United Community Bank.

Maitland Medical Center is located across from the roughly 70-acre Trelago master-planned development where Miami-based Related Group developed a luxury multifamily community that is sold last year for $105 million.

Jacksonville-based Vestcor Companies is currently constructing a 117-unit senior living community at Trelago, and earlier this month, GrowthSpotter confirmed Trelago master planner Battaglia Group was under contract to sell the first phase of its retail and office components to a new developer.

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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