Overview
Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to present the opportunity to acquire the leasehold interest in Forest Medical Plaza (the "Property" or "FMP"), a 90,033 square foot medical outpatient building located on the campus of HCA’s 340- bed Henrico Doctors' Hospital in Richmond, Virginia. Developed by Trammell Crow in 2009, Forest Medical Plaza represents one of the strongest modern institutional-quality healthcare assets in the Richmond metropolitan area.
Forest Medical Plaza is 94.4% leased with a rare multi-tenant MOB weighted average lease term greater than eight years. The Property is anchored by HCA Healthcare (S&P: BBB-) which occupies a top-floor surgical center containing four ORs, as well as cardiac surgical consultation, vascular, and OBGYN suites on the second and third floors. HCA's anchor presence is complemented by a mix of regionally entrenched and nationally recognized specialty practices spanning women's health, genetic counseling, gastrointestinal, and plastic surgery. Recent momentum totaling nearly 50,000 SF of new leasing and renewals solidifies FMP as a women’s health-focused, multi-specialty outpatient destination.
Positioned directly on the campus of HCA’s 340-bed Henrico Doctors' Hospital, Forest Medical Plaza offers immediate access to one of Richmond's most established acute care facilities and HCA’s second-most active hospital in Virginia (out of 14) by net patient revenue. This HCA location consistently ranks as a top national hospital in maternity and women's health, directly reflected in Forest Medical Plaza’s tenant mix. The Property itself offers a best-in-class physical product, anchored by a covered drive-through canopy at the main entrance, durable steel-and brick construction, extensive glazing that floods the interior with natural light, and a market-leading parking ratio of 5.58/1,000 SF.
Forest Medical Plaza is situated in Richmond's affluent West End, one of the MSA's strongest and most established suburban corridors, with average household incomes within a five-mile radius of $123,000, a population exceeding 218,000, and a dense concentration of healthcare employers, life sciences institutions, and established residential communities generates a deep, self-sustaining patient referral base.
Investment Highlights
- Situated on the campus of HCA's 340-bed Henrico Doctors' Hospital – Richmond's fourth-largest hospital and HCA's second-most active Virginia facility with an outstanding 35.3% net profit margin – one of the region's most active acute care platforms operating a Level II trauma center plus specialties in cardiology, oncology, and a nationally recognized women's health program with a Level III NICU, giving Forest Medical Plaza tenants direct access to hospital referral networks, shared patient traffic, and HCA’s full clinical ecosystem
- Forest Medical Plaza has executed ~50,000 SF of new leasing and renewals over the past ~12 months, demonstrating a mix of renewed commitment from suites such as HCA’s 20,000 SF 4th floor surgical center (tenant since building opening in 2009) and new commitment from the 15,000 SF Virginia Physicians for Women. Additionally, the two current availabilities are contiguous suites totaling approximately 5,000 SF (~5.6% of the building), offering flexibility to lease to one larger or two smaller tenants
- 42% of NOI is derived from HCA tenancy, including Richmond Surgical Associates, Cardiothoracic Surgical Associates, Commonwealth Midwifery, and HCA's 4th Floor ASC, supporting high tenant retention, practice stability, and reduced credit risk. Virginia's stringent Certificate of Need requirements for ASCs represent one of the most restrictive regulatory environments in the country, materially limiting new surgical facility development and reinforcing the irreplaceable nature of Forest Medical Plaza's existing on-campus ASC infrastructure, a competitive advantage that cannot be replicated without significant regulatory navigation
- No material purpose-built MOBs have delivered recently on Richmond's mature West End and there are none under construction; Forest Medical Plaza and the adjacent HCA-owned Sarah Cannon Cancer Institute are the only post-2000 buildings within the surrounding 11-property node directly adjacent to Forest Medical Plaza
- Forest Medical Plaza is anchored by leading regional physician groups such as Virginia Cardiovascular Specialists, Gastrointestinal Specialists (GI Alliance, majority owned by Cardinal Health – S&P: BBB), Virginia Physicians for Women, Virginia Institute of Plastic Surgery, and PrecisionHealth, alongside significant HCA Healthcare affiliations, reducing concentration risk while delivering institutional credit exposure across core medical specialties
- Located in Richmond’s affluent West End suburb, the building serves a five-mile population of over 218,000 with average household income of $123,000 one of the strongest demographic profiles in the Richmond MSA
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