Northside Hospital Acquires $4.2M Medical Building In Roswell

ROSWELL, GA — Alliance Consolidated Group of Companies recently announced it has sold a 7,126-square-foot net-leased medical building in Roswell. Northside Hospital acquired the asset for $4.2 million.

Located at 1340 Upper Hembree Road, the single-tenant property is leased to Atlanta Gastroenterology Associates. At the time of the sale, Northside Hospital occupied a portion of the space through a sublease.

Alliance acquired the property in November 2015 with Atlanta Gastroenterology Associates as the sole tenant at the time. In January 2021, Atlanta Gastroenterology Associates, which had been acquired by United Digestive in the intervening years, missed its option to renew its lease.

Northside Hospital subsequently approached Alliance with an offer to acquire the property, seeking to minimize disruption to its operations and further customize the building through expensive capital improvements. Knowing the transaction would have to be approved by Northside’s board and could therefore fall through at the last minute, Alliance pushed for Northside to sign a 10-year triple-net lease prior to the sale as collateral.

“You always have to be ready for disruptions in this business, whether in the market or at the property level, that could impact investment performance,” said Ben Reinberg, founder and CEO of Alliance. “In this case, our skillful negotiations protected our investors by putting us in a win-win scenario of either a sale or lease renewal.”

While the agreement was ultimately nullified, it ensured Alliance would not only retain its tenant but do so under a new lease that would add value to the property if the sale to Northside had been denied by the hospital’s board.

“It’s so rare to have an accredited tenant come to you looking to buy a property, even more so to place them into a long-term lease at the same time,” Reinberg said. “We saw an opportunity to reach an outcome that proved beneficial for all parties involved.”

The Roswell property is indicative of the growing demand for off-campus space among outpatient and high-acuity medical providers. As hospital systems seek to expand into new and/or underserved areas, single-tenant, net-leased assets offer attractive terms and desirable locations that are more convenient to the patient.

Alliance, which targets the 50 largest metropolitan statistical areas around the country, has been investing in Georgia for more than 15 years.