Northmarq brokers $5.33 million sale of healthcare office portfolio in Virginia

TULSA, Okla. (Sept. 27, 2023) — Northmarq’s Christian Vaughan, vice president, completed the sale of a seven-property healthcare portfolio occupied by Riccobene Associates Family Dentistry, a dental service organization with approximately 60 locations in the Mid-Atlantic. The properties are located throughout Virginia and total 20,435 sq. ft. Vaughan represented the 1031 exchange buyer, an individual investor based in Wisconsin, who acquired the asset for approximately $5.33 million. The sellers were dentists employed by the practice.

“We were tasked with finding an outstanding replacement investment opportunity for our client who was entering a 1031 exchange,” said Vaughan. “These dental clinics had a strong relationship in the communities they had been in for decades. The practices were recently acquired by a larger dental service organization, which enhanced the credit profile. Recent lease extensions also demonstrated their commitment to these properties in the long term. It’s always a joy for us to be able to provide a fantastic solution to a 1031 exchange position for our clients.” 

Medical office properties continue to offer tremendous opportunities to net lease investors, according to Northmarq’s Single-Tenant Office MarketSnapshot, and dentist offices specifically are in high demand. Riccobene Associates Family Dentistry is continuing to expand rapidly and provide dentistry services including cosmetic, family, orthodontic, surgical, pediatric, periodontics and prosthodontics.

The portfolio includes seven freestanding buildings ranging from 1,343 to 4,569 sq. ft. All properties operate on double net leases.