The Real Deal Miami

Flagler Investment Holdings buys medical office building in Delray Beach

Adjacent site is being developed into a medical facility
By Amanda Rabines | July 09, 2018 11:30AM

4675 Linton Boulevard (Credit: NKF Capital Markets)

Flagler Investment Holdings just picked up a two-story medical office building next to the Delray Medical Center for $9.75 million, property records show.

The healthcare real estate and private equity company paid $295 per square foot for the 33,000-square-foot building at 4675 Linton Boulevard. Flagler financed the deal with a $7.3 million loan from Citibank.

NKF’s Adam Greenberg, Michael Lapointe and Michael Lohmann represented the seller, Delray Outpatient Properties LLC. The company is led by principals at South Florida Gastroenterology Associates in Lake Worth.

The medical office building, built in 2005, sold 75 percent leased to tenants that include Tenet Health affiliate ASC, South Palm Gastro Health, Total Vein and Skin Dermatology and the South Florida Gastro Association.

Flagler Investments was founded in 1995. Earlier this year, the company sold a majority interest to the healthcare division of Fosun International, a major Chinese investment company headquartered in Shanghai.

In January, a 3-acre development site next to the building sold for $5 million, with plans for a medical facility.

In 2015, the Delray Medical Center began an $80 million expansion to build a 120,000-square-foot patient tower. The new construction was the largest addition to the hospital since it opened in 1982.