Onicx Group Acquires 72 KSF Medical Office Facility
Onicx Group has acquired The Merion Building, a 71,800-square-foot medical outpatient facility in King of Prussia, Penn., a Philadelphia submarket. Peakstone Realty Trust previously owned the asset, according to CommercialEdge information.
Newmark brokered the deal on behalf of the seller, while Wintrust Bank provided financing. The building was 75 percent leased at the time of transaction.
Originally completed in 1946, the two- and three-story building was converted from a high school into a medical office building in 2000. Additionally, the facility was completely renovated in 2018, the same source shows.
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The Class B facility at 700 S. Henderson Road has multiple conference rooms and a fitness center, as well as about 220 parking spaces. The property’s tenant roster includes Liberty Spine Care, Main Line Spine and Delaware Valley Vascular Institute. The new owner plans to implement a capital improvement plan, including interior upgrades and exterior renovations.
The Merion Building is close to Interstate 76 and less than 18 miles from downtown Philadelphia. Philadelphia International Airport is 24 miles away. Other medical providers in the area include Upper Merion Dental Associates, Main Line Dermatology and CHOP King of Prussia Hospital.
This deal marks Onicx’ third acquisition within the last 6 months. In November, the company acquired a two-story, 31,000-square-foot medical office building in Trinity, Fla., part of a three-facility campus.
MOB sector holds steady despite uncertainty
The medical office building inventory is projected to grow by 10.6 percent over the next five years, according to a JLL report. Despite the commercial real estate sector currently facing economic uncertainties, this increase is largely driven by aging population,
The final quarter of last year saw a significant drop in construction activity, with new project starts accounting for only 0.8 percent of the existing inventory, a record low. Absorption rates during the same period were remarkably high, surpassing 19 million square feet in the top 100 markets.
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