Forte Capital Management bought a Hollywood medical office building adjacent to Memorial Regional Hospital South for $11 million.
The Miami Beach-based company purchased the property at 3702 Washington Street, according to Chaim Cahane, president of Forte.
A group of five doctors, including at least three with offices at the property, sold the building through an affiliate, records show. That entity bought the building in 2004 for $4.4 million.
The 43,606-square-foot building, constructed in 1995, spans nearly half an acre, according to property records.
The four-story building is 92 percent leased, said Cahane, who worked with Forte’s Dov Tepper to close the off-market deal.
The real estate investment firm plans roughly $250,000 in improvements to the vacant spaces, common areas and building exterior, allowing rent increases. Rents now are 40 percent below market rate, Cahane said.
The medical office market has proved buoyant amid the pandemic. Florida continues to be a magnet for retirees, many of whom require medical care. The Hollywood medical office building connects through a pedestrian overpass to the hospital.
In one of the biggest medical office and hospital deals of the year, Medical Properties Trust bought five South Florida properties for roughly $900 million.
Forte Capital, which focuses on buying underperforming assets and increasing their value through improvements, has properties in South Florida, New York, New Jersey and Connecticut, according to its website.
In March, Forte and Jon Krasner’s 7G Realty purchased a Wynwood retail property at 310-318 Northwest 25th Street for $11.8 million. East End Capital sold the property, which previously had been in foreclosure. The suit was dismissed as the buyers restructured the debt.