Unique Single-Tenant, Net-Leased Asset Will House Both Impatient and Outpatient Services
CHICAGO, Oct. 15, 2019 – Cushman & Wakefield’s U.S. Healthcare Capital Markets team is representing Dallas-based Cawley Partners in the sale of a 101,608-square foot (sf), three-story, Class-A healthcare facility at 5120 Legacy Dr. in Plano, Texas. The property is currently on the market with offers due later this month.
The property was completed in 2016 as a speculative office project. Denver-based Eating Recovery Center (ERC) – the internationally recognized leader for eating disorder treatment – has committed to an 18-year lease on the entire building, which will house both inpatient and outpatient services.
The property is currently undergoing more than $22 million in landlord and tenant improvements that will allow ERC to operate 72 inpatient hospital beds licensed by the Texas Department of State Health. Upon completion, ERC will be the only provider in the state with licensed inpatient hospital beds dedicated exclusively to the treatment of eating disorders. The facility will compliment ERC’s existing locations in the Dallas/Fort Worth area.
“This trophy property is essentially brand new,” said Gino Lollio, Managing Director, with Cushman & Wakefield’s U.S. Healthcare Capital Markets team. “The investments being made by the landlord and tenant in this mission-critical facility makes this an attractive opportunity for the right buyer.”
Along with Lollio, Cawley is being represented in the sale by Cushman & Wakefield’s U.S. Healthcare Capital Markets team members Travis Ives, Senior Director, and Scott Niedergang, Managing Director, and Dallas-based Chris Barnet, Executive Director, C&W’s Healthcare Advisory Group.
“Treatment for eating disorders is a subcategory within the larger behavioral health segment of healthcare,” Ives said. “As yields on traditional medical office investments have compressed, behavioral health facilities with strong tenants like ERC have begun attracting significant interest from healthcare real estate investors.”
The property sits on 7.25 acres within Legacy Business Park, a 2,600-acre business, retail and residential community along the Dallas North Tollway. The world-class development is a distinctive address for many top corporate firms, including J.C. Penney, Frito-Lay, PepsiCo, JP Morgan Chase and Toyota.
“The Legacy location in North Plano is at the epicenter of one of the biggest commerce and commercial hubs in the area,” Barnet said. “It checks all the boxes as far as access to restaurants, hotels, shopping, major highways and both airports for those working, staying or visiting the Center.”
ERC is planning to move into the building in the first quarter of 2020. The Plano location – which will offer the full continuum of care and will be one of the largest of ERC’s 30 facilities in the U.S. – is expected to draw patients and family members from across the country.
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