Physician Real Estate Capital Advisors said it recently closed on the $8.2 million sale of the Millennium Eye Care and Freehold Surgical Center. The asset is located adjacent to the 284-bed CentraState Medical Center in Freehold.
PRECAP Managing Principal Scott Niedergang and JDS Real Estate Services Inc. represented both the seller, a physician partnership, and the buyer, a publicly registered real estate investment trust focused on acquiring a diversified portfolio of health care real estate.
The 25,164-square-foot, three-tenant facility is 100% occupied by Millennium Eye Care, Freehold Surgical Center and Schubel Chiropractic. Prior to the sale, both Millennium Eye Care and Freehold Surgical Center were acquired by Prism Vision Group, a physician-led administrative service organization that partners with eye care practices throughout the U.S.
In addition to executing the marketing and sale of the property, PRECAP also assisted in the negotiation of new, 10-year leases — with annual rent escalations — between the physician owners and their new Prism Vision Group-affiliated tenants.
“Prior to our firm’s involvement, the leases had minimal term remaining and did not include contractual rent growth,” Niedergang said. “By negotiating new 10-year lease terms with annual rent escalations tied to the consumer price index, we were able to add significant value to the real estate and increase net proceeds upon sale for our physician clients.”