PrivCap continues to focus on and expand its medical office portfolio with the acquisition of two properties in Georgia. In November, PrivCap acquired Windy Hill Pavilion, a 90,000 SF medical office building in Marietta, GA. This past month, PrivCap acquired Timber Ridge Center, a 44,500 SF medical office building. Both properties are in close proximity to WellStar HealthCare hospitals and surgical centers. WellStar is the largest and most successful healthcare system in Georgia. A lack of new development, coupled with tenant expansions, has pushed vacancies in Atlanta below 10% for the first time in more than a decade.
Atlanta has seen a 32.1% increase in the population of the 65-plus demographic between 2011 and 2016. “The steep increase in the 65-plus population and anticipated greater need for in-office physician services by this group signals a continued increase in demand for healthcare services and medical office space in the years ahead,” commented Andrea Cross, head of office research at CBRE. The demand for medical space is expected to increase, as Atlanta has a projected 65-plus population growth of an additional 25.3% through 2021.