Avison Young brokers sale of Children’s National Prince George’s County at Woodmore Town Center11 Sep 2020
Jonathan Hipp, Principal, Represented the Seller, Heritage Partners
Washington, D.C. – Jonathan Hipp, Avison Young Principal and Head of the U.S. Net Lease Group, today announced the sale of Children’s National Prince George’s County at Woodmore Towne Center in Glenarden, Maryland to Municipal Acquisitions.
On behalf of Heritage Partners, a national full-service real estate development firm based in the Mid-Atlantic, Hipp brokered the $39.3 million sale using a complex structure that allows Children’s National to transition from a leasing arrangement to ownership of both the newly constructed building and its underlying real estate.
Hipp navigated both sides through the complex transaction and found a creative solution to work around the credit tenant lease (CTL) financing involved. “Jonathan Hipp of Avison Young arranged both the initial debt financing at the start of the project and brought a highly-qualified buyer to take us out once the facility opened. We had a strategy from the very beginning and Jon executed that plan flawlessly,” said Terry Richardson, CEO of Heritage Partners.
The regional outpatient facility is a build-to-suit three-story building with approximately 60,000 gross square feet that houses a pediatric ambulatory surgery center and includes space for pediatric medical offices. Children's National Prince George's County is the largest regional outpatient facility in the health system’s portfolio. Municipal Acquisitions restructured the original lease with Children's National, providing substantial economic benefits, including eventual lien-free ownership and lower overall occupancy costs.
About Heritage Partners
Heritage Partners, a full-service national real estate development firm with a strong focus in the Mid-Atlantic markets, works with institutional investors to build and manage neighborhood shopping centers, government and medical office, net-leased single-tenant pads. Backed by solid data, and nimble with respect to asset types, the firm also provides institutional quality contracted property management and third-party leasing services. For further information, please visit https://www.hp-llc.com/.
About Children’s National Hospital
Children’s National Hospital, based in Washington, D.C., celebrates 150 years of pediatric care, research and commitment to community. Volunteers opened the hospital in 1870 with 12 beds for children displaced after the Civil War. Today, 150 years stronger, it is among the nation’s top 10 children’s hospitals. It is ranked No. 1 for newborn care for the fourth straight year and ranked in all specialties evaluated by U.S. News & World Report. Children’s National is transforming pediatric medicine for all children. In 2020, construction will be complete on the Children’s National Research & Innovation Campus, the first in the nation dedicated to pediatric research. Children’s National has been designated twice as a Magnet® hospital, demonstrating the highest standards of nursing and patient care delivery. This pediatric academic health system offers expert care through a convenient, community-based primary care network and specialty outpatient centers in the D.C., metropolitan area, including the Maryland and Northern Virginia suburbs. Children’s National is home to the Children’s National Research Institute and Sheikh Zayed Institute for Pediatric Surgical Innovation and is the nation’s seventh-highest NIH-funded children’s hospital. It is recognized for its expertise and innovation in pediatric care and as a strong voice for children through advocacy at the local, regional and national levels.
Photo by Ira Wexler
About Avison Young
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises thousands of real estate professionals in more than 100 offices around the world. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
Avison Young is a 2020 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for nine consecutive years.