Multi-Tenant Medical Office Building for Sale in Winchester, Virginia

Wednesday, June 15, 2016

Update: This medical office building is no longer on the market.

On behalf of the owner, HFF is marketing for sale Winchester Medical Office Building, a 159,301-square-foot, value-add medical office building with triple net leases in Winchester, Virginia. Located in the Shenandoah Valley at 333 Cork Street, the medical property for sale is approximately 1.8 miles from Winchester Medical Center, an 11-building hospital campus that is the primary healthcare destination in the region. The center is operated by Valley Health, the largest tenant in the building.

Winchester Medical Office Building is approximately 70 miles from Washington, D.C. and provides walking access to a wide assortment of unique shopping, dining and historical experiences. Additionally, the building is 2.5 miles from Interstate 81. and 7 miles from Route 7, which is the primary thoroughfare that connects Winchester to the central business districts of Bethesda, Washington, D.C. and Baltimore.

Value-Add Medical Office Building Investment Benefits

  • Strong Hospital Anchor Tenancy: The medical office property offers an investor the opportunity for investment in a medical property leased to an investment-grade health system, Valley Health, which occupies 40 percent of the building. Winchester Medical Center is the market’s leading hospital in its respective service area, and the credit tenancy of Valley Health provides a reliable source of future cash flow. Valley Health’s medical centers can be found throughout the Shenandoah Valley region. The organization operates six hospitals in Virginia and West Virginia that house a combined total of approximately 594 beds. Valley Health sees 30,000 inpatients per year, 110,000 ER visits and 875,000 outpatient encounters in addition to approximately 3,000 births. Valley Health enjoys a distinct leading market position in a large seven-county primary service area in Northern Virginia and maintains an A1 credit rating from Moody’s.
  • Outstanding Market Fundamentals: The city of Winchester was considered a hidden gem in the Shenandoah Valley but has recently received national attention for its strong demographics and local economy. The healthcare industry continues to be the leading employment sector in the area, with consecutive month-to-month job growth for nearly five straight years.
  • Triple Net Leases: Valley Health, which occupies more than 40,000 square feet on a triple net lease basis between the second and third floors for their rehabilitation facility with an additional 22,557 square feet of administration space on the first floor. Additionally, Blue Ridge Hospice is another major tenant of the commercial property for sale. It occupies space on a triple net lease basis on the fourth floor with administrative offices on the second floor.
  • Favorable Winchester Demographics: Favorable demographic characteristics in the Winchesters area, including a low unemployment rate and good population growth of retirees and exurbanites from Washington, D.C. create a thriving market for healthcare services. During the past decade, the Winchester MSA has secured more than $850 million in capital investments and has recorded record job creation in excess of 4,000. Kraft, Navy Federal Credit Union and Thermo Fisher Scientific are some of the blue chip names that have significantly increased the number of employees locally.

Winchester Medical Office Building offers investors an opportunity to acquire a value-add commercial property for sale with the unique chance to immediately lease space and increase cash flow. For more information on this or other medical office buildings for sale, contact Evan Kovac or Ben Appel.

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