Northside Hospital Buys Pill Hill Office Campus Out Of Receivership
Northside Hospital is the latest user of office space to take advantage of distress in the market to purchase a property on the cheap for its own purposes.
The hospital system paid $14.2M this month for Glenridge Point 100 and 200, two five-story office buildings in Sandy Springs, Bisnow has learned. The properties were sold by receiver B. Riley Advisory Services, according to a Colliers press release.
Northside already occupies 60% of the 92K SF Glenridge Point 200 office building, Colliers Senior Vice President Tom Davenport told Bisnow. Now it controls both buildings, which sit a mile from its main hospital campus, although Northside's plans are unclear. Glenridge 100 is occupied by a variety of other users, Davenport said.
Northside purchased the two buildings in a partnership with Alan Joel Partners and local real estate investor Dion Meltzer, who were previously reported as the buyers by the Atlanta Business Chronicle. Alan Joel declined to disclose details of the JV arrangement.
The property is nestled between Glenridge Drive, Johnson Ferry Road and Georgia 400. It sits close to Pill Hill, an area of Metro Atlanta known as a nexus of regional medical care with three major hospitals: Northside, Emory St. Joseph’s and Children’s Healthcare of Atlanta.
The 185K SF campus last sold in 2018 for $44M to Atlanta-based Richmond Honan Development & Acquisitions, according to Fulton County records. It sold the ground under the building to Safehold, a New York-based REIT that specializes in ground lease transactions, for $16M.
Richmond Honan at the time planned to transform the complex into a 500K SF mixed-use medical campus that would also include a hotel and an assisted living facility.
The project never came to fruition. There doesn't appear to be debt associated with the property, according to public records, so it is unclear how it wound up in receivership.
Richmond Honan had a sizable portfolio of medical office buildings, but at least two of its property affiliates have filed for bankruptcy in recent years, including the LLC that owned the Royal Ridge medical office building adjacent to Northside Hospital. That building sold out of bankruptcy in 2023 for $21M.
It was unclear how Richmond Honan lost control of Glenridge Point 100 and 200. The receiver took the campus over in the third quarter of 2023, Davenport said. Safehold continues to own the land beneath Glenridge Point, Davenport confirmed. Davenport and Colliers Vice President Dany Koe brokered the sale for B. Riley.
Northside didn't respond to messages seeking comment as of press time. It is just the latest occupier to buy a suburban Atlanta office property for itself as values in the market have tanked.
“Another user sale in the northern suburbs. Here we go,” Davenport said.
Sixteen office users have purchased buildings 50K SF or larger in the past 16 months in the northern metro area, Davenport said, citing Colliers data.
In recent months, Eastern Glass and Aluminum bought the six-story Overlook at Sugarloaf for nearly $24M, PruittHealth bought Ashford Perimeter for $22.8M, and cybersecurity firm Fortinet acquired 1300 Parkwood Circle for $15.8M.
“I think they recognize the ability to purchase assets at below replacement costs and have the ability to control their facility operating expenses going forward,” Davenport said.
UPDATE, FEB. 13, 1:45 P.M. ET: The story has been updated to reflect that Alan Joel and Dion Meltzer were partners with Northside in the acquisition of Glenridge 100 and 200.
