E-W Medical Center

Diagnostic Ventures became involved in this transaction after the process of site selection. The surrounding market was populated with a substantial inventory of older properties. With the exception of the buildings on the hospital campus, the existing MOB’s suffered from aesthetic and/or functional obsolescence; prevailing rental rates were quite low, roughly $6/SF less than E-W Medical Center’s initial rate. E-W began with prelease commitments covering nearly 75% of the total area. Though the building could have been downsized to meet the prelease requirements, this would have raised the overall development cost thereby increasing the rental rate for the prelease tenants. Diagnostic Ventures accepted the leasing risk, confident that top metro Atlanta practices seeking space near the regional hospital would choose a Class A building for their patients and staff. Children’s Healthcare of Atlanta entered the market and leased all of the vacant area. Later, the building was sold to others.

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