Trio of Frederick Medical Office Buildings Trades for $35M

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BentallGreenOak has acquired the Aspen Ridge Medical Office Portfolio, three medical office buildings in the Washington suburb of Frederick, Md., from Ausherman Properties.

The 91,220-square-foot property sold for just under $35 million, according to public records. 

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Avison Young represented the seller and procured the buyer.

“The bidding was way more than expected,” James Kornick, principal and co-leader of Avison Young’s U.S. health care capital markets practice, told Commercial Observer. “The market for medical office is so strong. This sold for more than 10 percent of the high end of what I originally thought it would sell for.”   

Located at 161, 163 and 165 Thomas Johnson Drive, within “Doctors Row,” the buildings range in size from 21,264 square feet to 47,727 square feet. Aspen Ridge consists of two one-story medical office buildings, one each completed in 2014 and 2015, and a two-story medical office building built in 2017.  

At the time of the sale, the trio of properties was 92 percent leased to a roster of 16 tenants, including Johns Hopkins, Frederick Health, MedStar, Quest, LabCorp and Fresenius

“These are real nice buildings from a local developer, and now that they’re leased to some great tenants, it was time to sell,” Kornick said. “The quality of the buildings plus attractive demographics of affluent, fast-growing Frederick appealed to every kind of investor, both institutional and private.”  

The buildings are near Frederick Health’s outpatient services campus, the James M. Stockman Cancer Center, the Frederick Health Hospital and the planned Frederick Health Village.  

Joining Kornick on the deal was Mike Wilson, principal and co-leader of Avison Young’s U.S. health care capital markets practice, and Erik Foster, principal and head of the firm’s industrial capital markets practice.  

Keith Loria can be reached at Kloria@commercialobserver.com.