Virginia Hospital Center Acquires Alexandria Office Building at Major Price Cut
VHC to convert building to outpatient surgery center and medical office space
Virginia Hospital Center (VHC) has acquired a six-story office property in Alexandria, Va., for use as an outpatient surgery center and medical office space, according to the company.
VHC paid $21.5 million for the 145,000-square-foot building at 3601 Eisenhower Avenue, according to public records, a 43 percent cut from what seller Monday Properties paid when it acquired the property in 2018 for $37.8 million.
The building, which was constructed in 1994, was home to Michael Baker International until at least 2021, and had approximately 25,000 square feet vacant in 2020, according to Monday Property marketing documents.
By 2023, the assessed value of the property had fallen to $25.9 million, compared to $34.4 million when Monday Properties acquired it in 2018, according to tax records.
Avison Young represented the buyer in its search for a new location.
“We’ve been in the market for some time looking for just the right opportunity, and after an exhaustive search we really feel like we struck gold with this one,” Bill Evans, a principal of Avison Young, said in a prepared statement.
VHC currently has approximately 20 other Northern Virginia locations, most based in Arlington.
“The convenient location right off the Capital Beltway and on Eisenhower Avenue in Alexandria was a significant factor in identifying this property as the new home for VHC’s outpatient surgery center,” Evans said.
The sale is indicative of the current investment sales situation in the Northern Virginia office market, which has seen better days, according to Avison Young’s 2023 third-quarter market report, with sales figures coming in at just $922 million compared to $3 billion in 2019. In the past 15 years, only 2013 saw lower sales volume at the end of the third quarterQ3, with $1.2 billion.
The uncertainty of the future of the office market has been reflected in reduced investor appetite for office product, with factors the firm attributes to Treasury rate increases and high rises in construction costs.
Keith Loria can be reached at Kloria@commercialobserver.com.