March 29, 2019
Serving nearly 2.5 million patients annually through three hospitals and more than 150 outpatient locations, Northside Hospital is one of Georgia’s largest and most respected healthcare systems. Northside’s growth and success, especially over the last five years, is due in large part to strategic partnerships.
“We’re always looking for new places to extend our outreach,” said Northside’s Vice President of Planning & Real Estate, Doug MacDonald. “Having someone who’s willing to do it with us – somebody who’s flexible and agile and can come to the table quickly – is something we look for in a partner.”
These attributes are precisely what Northside found in Physicians Realty Trust. In 2017, DOC acquired two multi-tenant properties affiliated with Northside, after the hospital system exercised their rights of first refusal during the sale of Duke Realty’s healthcare portfolio. DOC’s team of healthcare real estate experts closed on the acquisition of Northside Center Pointe and Northside Cherokee/Towne Lake in 2017 for nearly $193 million.
Throughout the acquisition process, Northside built a positive relationship with DOC. The DOC team, MacDonald said, demonstrated that they wanted to be long-term partners. DOC listened to Northside’s needs and addressed them.
“I’m looking for people who are solution-oriented and show a willingness to be creative,” MacDonald said. “DOC was very amenable to thinking of solutions for how things could work for both of us.”
Geographically, Northside Center Pointe is a 366,000 square foot MOB located on “Pill Hill” in northern metro Atlanta with direct proximity to Northside Hospital, Saint Joseph’s Emory Hospital, and Children’s Healthcare of Atlanta. Located in Woodstock, Georgia, the 103,000 square foot Northside Cherokee/Towne Lake building was built in 2013 to serve the needs of suburban Atlanta residents.
Looking to the future, Northside plans to move some of their administrative space out of Center Pointe to make more room for physicians and medical use. The healthcare provider has seen tremendous growth in the number of hospital beds throughout its system, and there is a growing need in cardiology, orthopedics, and neurology services, according to MacDonald. To improve the patient experience, Northside is also investing in their campus through a new 8-story bed tower and new 1,000+ space parking deck as well as a 450-space parking deck that will serve the hospital and Center Pointe.
Every strategic move that Northside makes has a real estate component. That is particularly true when Northside is looking for locations to add new facilities. “Our philosophy now is to look at convenient, community-focused care – something people can get to easily and have the convenience of care in their backyard,” MacDonald said.
Physicians Realty Trust is investing in the future of healthcare delivery, which it believes will be delivered primarily in outpatient facilities that are convenient and welcoming to patients. DOC has confidence in the Northside strategy and looks forward to working with them in many more locations for years to come.
"We’re always looking for new places to extend our outreach. Having someone who’s willing to do it with us – somebody who’s flexible and agile and can come to the table quickly – is something we look for in a partner."
— Doug MacDonald | Vice President of Planning & Real Estate | Northside Hospital