This Class A, multi-tenant medical office building is located adjacent to Northside Hospital Gwinnett in Lawrenceville, a suburb about 30 miles northeast of downtown Atlanta. The largest building tenants are the hospital, OrthoAtlanta, and North Atlanta Endocrinology and Diabetes. Northside Hospital Gwinnett is the largest hospital facility in Gwinnett County, which has an affluent and rapidly growing patient base. Terrace Park has become a strategic asset to the hospital for expanding and deploying services in an easily accessible location for patients.
When Remedy acquired Terrace Park, the property was owned by a lender and only 57% leased. Remedy has been able to increase building occupancy to over 90% by making renovations and being flexible in its leasing approach. For example, the hospital wanted to expand its first-floor space by 18,000 square feet for a new cancer center, which requires a Certificate of Need (CON). The CON application required Northside to secure the space via a lease before submittal. Northside was concerned about obligating themselves to a long-term lease when their desired use was not assured. Ready to bear risk for its tenant partner, Remedy crafted a structure where Northside leased the space rent-free for several months with the ability to cancel if the CON was unsuccessful.
Transaction Date: August 2013
increase in occupancy
square foot expansion