Boyd Watterson drops $38M for veterans clinic in Sunrise

Healthcare Realty Trust sold a Veterans Affairs clinic in Sunrise for $38.2 million, 23.3 percent less than its purchase price six years ago.

Boyd Watterson Asset Management bought the William “Bill” Kling Department of Veterans Affairs Outpatient Clinic at 9800 West Commercial Boulevard, according to records and real estate database provider Vizzda. It’s unclear why the property sold at a loss, though it appears the building didn’t have debt issues. Broward County records show the seller has no outstanding mortgage on the building.

The one-story, 111,000-square-foot building was completed in 2008 on 9.3 acres, Vizzda and property records show. The clinic offers primary care, cardiology, dental, mental health, neurology, orthopedics and women’s health services, according to its website.

Healthcare Realty Trust, a Nashville-based medical real estate investor, had paid $49.7 million for the building in 2017, records show.

Led by Todd Meredith, Healthcare Realty was founded in 1993 and has expanded its portfolio to 728 real estate properties nationwide, spanning 44.6 million square feet, according to its website. It also offers real estate leasing and management services.

The firm and Scottsdale, Ariz.-based Healthcare Trust of America were in talks last year about merging, a deal that Healthcare Realty’s website shows as having been finalized.

Cleveland, Ohio-based Boyd Watterson is a commercial real estate investor that focuses on government-leased properties, according to its website. Led by Brian Gevry, it has $17.7 billion of assets under management that consist of $10.6 billion of real estate and $7.1 billion of fixed-income and equity assets.

In past South Florida investments, Boyd Watterson paid $19 million in 2018 for the Royal Palm Beach building at 9300 Belvedere Road leased to U.S. Citizenship and Immigration Services.

In New York, Boyd Watterson went into contract last year with Brookfield Asset Management to purchase 9 and 11 MetroTech Center, leased to a 911 command center, for $310 million.

Medical offices have proven a robust asset class in South Florida, coveted by investors.

In June, Anchor Medical Properties bought the building at 8100 Southwest 10th Street in Plantation, which is fully leased to University of Miami Health System, for $45.5 million. Starwood Capital Group was the seller.

In Miami-Dade County’s Kendall, Baptist Health paid $17.9 million last year for an 18-acre development site entitled for 215,000 square feet of medical offices and other uses. The property is within the bigger mixed-use Kendall Town Center project. Baptist, which runs West Kendall Baptist Hospital adjacent to Kendall Town Center, plans to develop the property with uses that will complement the hospital.

The Sunrise VA building is the latest in South Florida to sell at a loss. In South Beach, New York York-based Shire Realty sold the nearly vacant mixed-use building at 826 Collins Avenue for $5 million last month, or 41 percent less than Shire’s purchase price a decade ago.