Philadelphia Hospital-Leased Medical Office Building For Sale

Thursday, February 16, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Crozer-Keystone at Broomall, a 57,320-square-foot, Class A cancer center and multi-specialty outpatient facility near Philadelphia, Pennsylvania, that is fully leased on an absolute triple net basis to Crozer-Keystone Health System (CKHS). CKHS is a five-hospital, 830-bed, for-profit teaching hospital and the dominant health system in Delaware and Chester counties, with 63 percent market share.

The newly-constructed medical office building for sale is “mission-critical” to the long-term objectives of the health system. Crozer-Keystone at Broomall was completed in 2015 and is an expansion of the health system’s existing campus. Located at 2010 and 2050 West Chester Pike, it is an integral part of the CKHS strategy to provide services and programs to meet the needs of the community. Numerous physicians relocated to this facility from multiple existing locations throughout the community to provide patients with convenient access to 66 physicians across 20 specialties and sub-specialties under one roof, via concierge services and an unsurpassed patient experience.

Crozer-Keystone at Broomall is located at 30 Lawrence Road in Broomall, Pennsylvania, less than 30 miles from Center City Philadelphia. The property is located in the dense, infill Route 3 corridor (41,500 vehicles per day) in northern Delaware County at the confluence of Lawrence Road, Route 3 (West Chester Pike) and Interstate 476 (Blue Route). The property also features excess ground, owned fee simple and included in the offering, which offers an investor the opportunity to grow its relationship with the hospital by facilitating up to 30,000 square feet of additional development.

Crozer-Keystone at Broomall is a multi-specialty facility operating under a master lease agreement. This master leased structure provides a new owner ease of management and nominal exposure to significant landlord responsibilities, while also providing the benefit of risk mitigation from tenant diversification most often seen in multi-tenanted buildings. 

In July 2016, Crozer-Keystone Health System was acquired by Prospect Medical Holdings, Inc. (Prospect), a for-profit hospital operator that owns 13 hospitals in Pennsylvania, New Jersey, Rhode Island, Connecticut, California and Texas, with a total of 2,258 beds, 40 clinics and outpatient centers. The health system’s partnership with Prospect will ensure even greater access to quality care in the community. Prospect will make capital investments in the health system that will dramatically increase the ability to modernize, attract more patients and expand service to the community.

For more information on Crozer-Keystone at Broomall or other medical office buildings for sale in Pennsylvania, please contact HFF Director Ben Appel, Senior Managing Director Doug Rodio or Managing Director Brett Segal in HFF’s Philadelphia office.

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