Heritage Partners Sells Children’s National Prince George’s County At Woodmore Towne Center To Municipal Acquisitions
Heritage Partners, a national full-service real estate development firm with a strong focus in the Mid-Atlantic markets, announced the sale of Children’s National Prince George’s County at Woodmore Towne Centre in Glenarden, Maryland to Municipal Acquisitions, using a proprietary 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. The sale price is $39.3 million.
“This was a tri-party transaction that brought all three groups together in a unique collaboration resulting a triple win,” said Terry Richardson, Heritage Partners CEO.
Children’s opened their new 60,000 square foot facility pursuant to a triple net lease in July of this year. An affiliate of Heritage Partners was both developer and landlord for the project.
“Children’s National Prince George’s County has brought families in the region greater access to a broad range of pediatric services, and we’re pleased to now be the landowner of this facility,” said Charles Weinstein, executive vice president & chief real estate officer for Children’s National Hospital.
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.
The acquisition was financed through the issuance of tax exempt and taxable bonds.
“Our team at Municipal Acquisitions is pleased to have the opportunity to create this structure to provide Children’s National with flexibility and value in the ownership of the property and the land on which it is located,” added Municipal Acquisitions CEO Jon Kling.
The deal was brokered by Jonathan Hipp of Avison Young.