Denver-based Broe Real Estate Group (BREG) has sold a 121,789-square-foot medical pavilion located at 9601 Blackwell Road in Rockville, Md.
The buyer is Texas-based Caddis Healthcare Real Estate who acquired Shady Grove Medical Pavilion as a strategic addition to its real estate holdings.
Constructed in 2000, Shady Grove Medical Pavilion was acquired in a 2014 auction as a distressed asset. For the past four years, the BREG team invested in substantial capital improvements and implemented an active management plan to convert the property from standard office zoning to its current medical office status. The asset repositioning strategy saw project occupancy rise from its vacant status at acquisition to a current occupancy rate of 72.5 percent.
“Shady Grove Medical Pavilion is a high quality asset that lays out well for a multi-tenant strategy,” said Jason Signor, Caddis CEO . “The property is a great investment for Caddis, it’s already home to a strong medical tenant base, and we have the opportunity to unlock additional upside by leasing up the remaining vacant space in the building.”