Memorial Healthcare Paid $69 Million for a Hollywood Medical Office Campus Bought for $50 Million in 2021
About 254,000 square feet on 16 acres traded at roughly $272 per foot. Medical office is the one office category in South Florida still clearing on fundamentals.
Memorial Healthcare paid $69 million for Venture Center, a professional and medical office complex at 3440 Hollywood Boulevard and 200 to 300 South Park Road, with the South Broward Hospital District named as the buyer in Hoodline's September 11 account. The deal covers three four-story buildings on 16 acres. The price works out to roughly $272 per square foot.
A joint venture of Fox Ridge Capital, Jax Capital Investments and TKF Real Estate Investment sold the property after buying it for $50 million in 2021, per Hoodline. The venture had spent five years upgrading the buildings and leasing them to medical tenants. Cushman & Wakefield represented the seller, per CRE-Sources. Square footage varies slightly by outlet, 254,015 at Hoodline and 253,742 at CRE-Sources, so call it about 254,000 square feet and do not build a per-foot model on the last three digits.
Why an owner user paid up
The complex sits at the intersection of Hollywood Boulevard and South Park Road, about 2.25 miles east of the Florida Turnpike and a half mile west of I-95, per Hoodline, and near Memorial's flagship hospital. That is the whole thesis. A health system buying the office park next to its own campus is not underwriting a cap rate the way a fund would. It is buying control of where its physicians and outpatient services sit for the next 30 years, and it can pay a number a passive investor would not.
My read
A 38 percent gain in five years on Broward medical office, with an owner user on the buy side, is the cleanest commercial data point I have seen this week. The lesson for my commercial clients is narrower than the headline suggests. This price works because the buyer is the anchor institution in that submarket, not because suburban office recovered. If you own medical space near a major hospital campus in Broward or Miami-Dade, your buyer list includes the hospital system itself, and that is a floor generic office does not have. Go find out whether the system has bought anything within two miles of you in the last three years, because that tells you more about your exit than any broker opinion of value will. I would not stretch this comp one block past medical use. The same three buildings leased to insurance agencies and law firms do not trade at $272 a foot.
I will tell you who has been buying within two miles of your building and what they paid.
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