The GW Medical Faculty Associates, the largest physician-led multi-specialty practice in metro Washington, has acquired the 120,000- square-foot, nine-story Class A office building at 2300 M Street, NW for $49.5 million, according to the practice’s real estate advisor Studley.
The MFA was in dire need of strategically situated expansion space and will consolidate its several ancillary leased sites into the new building. 2300 M Street is situated just four blocks from GW Hospital and is proximate to The MFA’s primary facility at 2150 Pennsylvania Avenue, a 300,000-square-foot medical building that it has occupied since its inception 10 years ago as an independent 501 (c) 3.
David Lipson, Arthur Greenberg, Vernon Knarr and Adam Schindler of Studley represented the MFA in the transaction. The seller, a partnership comprised of the Carlyle Group and AON, was represented by John Kevill and James Malloy of Jones Lang LaSalle.
“Buying a building in today’s market is much more financially prudent for nonprofits that may qualify for tax exempt financing and may be exempt from real estate taxes,” explained Mr. Knarr. “This particular location was a perfect fit for The MFA as it is well situated near GW hospital and the MFA’s main facility on Pennsylvania Avenue. Having the practice consolidated into two proximate locations is a much better solution than being scattered around town.”
Because most of the building is currently occupied by a short-term, swing-space tenant, the German Embassy, MFA will initially move several clinical practices into the vacant space. When the embassy moves out between 2013 and 2014, MFA will fully renovate the building and begin to occupy the 70,000 square feet vacated by the embassy.
“This real estate strategy supports the growth and development of the MFA, both physically and financially,” shared CEO Stephen L. Badger. “Being centrally situated will provide us with operational efficiencies that could not be realized with the numerous locations we were forced to expand into. We are looking forward to the transition and know it will only enhance the quality of service that we provide our patients.
Studley is the only global tenant advisory firm with a pure tenant representation delivery platform. Founded in 1954, Studley pioneered this conflict-free business model. Today, with 19 offices nationwide and an international presence through its London office and AOS Studley throughout Europe, Studley provides strategic real estate consulting services to top-tier corporations, law firms, nonprofits, government agencies and institutions of higher education. Information about Studley is available at www.studley.com.