United Realty Trust Acquires Medical Headquarters in Cherry Hill

On Jan 13, 2015

United Realty Trust Incorporated (URTI), an SEC-registered public non-traded REIT led by Jacob Frydman, recently acquired 7 Carnegie Plaza in Cherry Hill, a stabilized triple-net leased medical headquarters building. United Realty Trust paid $9.3 million for the 90,000- rentable-square-foot property, obtaining a first mortgage loan in the amount of $5.5 million and a mezzanine loan in the amount of $1.8 million.

The one-story headquarters building, built in 1988 and renovated in 2004 and 2009, is located off the New Jersey Turnpike twelve miles from downtown Philadelphia. The property was purchased from FRS Carnegie Plaza. L.L.C.

The property is currently 100 percent leased to Fox Rehabilitation Services, P.C., a private provider of physical, occupational and speech therapy services.

“We believe this property fits the investment profile for the income silo of URTI’s dual strategy,” said Jacob Frydman, CEO and chairman of URTI. “Today’s market has high demand and generally limited supply for single-tenant buildings of this size, and we believe we acquired the property at a favorable price relative to development cost. The property’s value should be further enhanced by its good visibility, easy access, ample parking and location near downtown Philadelphia.”

Founded in 1998, Fox Rehabilitation Services has grown to offer services to patients throughout the Northeast and Mid Atlantic states. The company has been recognized for excellence by numerous professional journals and organizations, including “Top Five Private Practice” in the nation by ADVANCE Magazine.

“United Realty is thrilled to partner with Fox Rehabilitation, a well-established and expanding company that provides important rehab services to a growing demographic,” added Frydman. “Properties such as 7 Carnegie Plaza are in demand and we believe we can unlock additional value from this property.”

The 17.4 acre property provides infrastructure for more than 700 employees and includes 559 onsite outdoor parking spaces.

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