Gyrodyne To Buy Virginia Medical Center For $13.2 Million
The company said it anticipates completing due diligence and closing on the purchase on or about March 31 but in no event later than April 30.
Gyrodyne CEO Stephen V. Maroney said that the acquisition advances the firm's medical office investment strategy. He added, "It also qualifies for tax deferral treatment under Section 1033 of the Internal Revenue Code and will get us over the finish line for investing in a tax-efficient manner within required time limits the $26 million advance payment for property condemned by the State of New York."
In 2007, Gyrodyne purchased ten buildings in the Port Jefferson Professional Park in Port Jefferson, New York. Last year, the company bought Cortlandt Medical Center in Cortlandt Manor, New York. The Fairfax property represents the firm's first asset in the metro Washington, D.C., area.
Fairfax Medical Center serves as home to 28 medical tenants. The property sits across the street from a surgical center owned by Hospital Corp. of America. It also sits equidistant from Inova Health System's Fairfax and Fair Oaks hospitals, which are just 5.5 and 6.5 miles away, respectively.
Gyrodyne said it anticipates launching "an aggressive leasing program" upon closing on the Fairfax Medical Center purchase. According to Gyrodyne, Fairfax Medical Center had halted lease renewals there to accommodate a condominium conversion prior to the residential real estate market's slowdown. The medical center's current occupancy rate is 84 percent.
Long Island, New York-based Gyrodyne owns a 68 acre site around 50 miles east of New York City on the north shore of Long Island, including four industrial and office buildings. The company also owns ten medical office buildings in Port Jefferson Station, New York and five medical office buildings in Cortlandt Manor, New York.
The company is currently contesting the value paid by New York State for 245.5 adjoining acres taken under eminent domain proceedings. It is also a limited partner in the Callery Judge Grove, which owns a 3,500 plus acre property in Palm Beach County, Florida.
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