Project Highlights

Charlottesville, VA

Multi-Specialty MOB

26,618 SF

This project began when Sentara Healthcare asked Turner Group to identify potential parcels for a multi-specialty medical office building on the west side of Charlottesville, VA. After an exhaustive search in this highly sought after area of town, Turner Group identified several parcels, including one with a small and aging class C office and retail use.

Sentara immediately saw the value in the parcel that we had found and asked Turner Group to find a way to secure the land. Initial conversations with the landowner revealed that he was unwilling to sell the land. He preferred the monthly cash flow he was receiving to a one-time payment that he would receive from a sale, especially considering that he had an extremely low basis in the land and would owe significant capital gains taxes. Turner Group prepared three potential deal structures for the landowner to review – an outright sale, a land lease, and a partnership. Discussing these options helped Turner Group’s deal team to understand that the landowner’s key priorities were maintaining cash flow and building value that he could pass along to his children.

After several months of negotiating, Turner Group and the landowner agreed to a deal structure. The landowner contributed the land to a partnership LLC formed by Turner Group. Turner Group contributed the additional capital needed as well as all of the development work to build Sentara a flagship multi-specialty medical office building in Charlottesville’s western entrance corridor.

Q4 2021: Construction Complete

Two years after the original conversations with Sentara, the Ivy West Medical Office Building was completed on time and within budget. True to Turner Group’s philosophy, the project was a win-win-win for all stakeholders. Sentara now commands a strong presence in one of Charlottesville’s premier areas. The landowner’s cash flow has tripled and he has received millions of dollars in value creation to pass along to his children. Turner Group has added a flagship building to our growing build to core medical portfolio.