Gyrodyne (GYRO) Update
Gyrodyne announced today that the company acquired Fairfax Medical Center, located in the DC Metro area, thought to be one of the nation’s stronger real estate markets according to management. The acquisition cost $13.2M, and the property has 28 medical tenants with 2 four story brick buildings sitting on 3.5 acres. The property is near INOVA and HCA facilities. With all the acquisition activity, an updated valuation of Gyrodyne is warranted, and will be coming soon.
Management commentary from the press release:
“Gyrodyne is very pleased with the acquisition of this property, which advances our medical office investment strategy,” said Stephen V. Maroney, Gyrodyne’s chief executive officer. “It also qualifies for tax deferral treatment under Section 1033 of the Internal Revenue Code and will get us over the finish line for investing in a tax-efficient manner within required time limits the $26 million advance payment for property condemned by the State of New York.”
Peter Pitsiokos, Gyrodyne’s Chief Operating Officer, stated that Gyrodyne has “identified Metro D.C. as a market that is positioned to perform extremely well in the next cycle. By targeting this region, Gyrodyne has aligned itself with many other national, institutional and foreign investors who recognize the region as a strong, key venue moving forward. Additionally, this property occupies an attractive infill location, which we view as another plus in the current climate.”
“The location is unbeatable, and there are few competing properties in the market,” Pitsiokos said. “Both Inova Health System and HCA are successful, well-established and deeply respected organizations. We will be in very good company there.”
“Gyrodyne will continue to operate Fairfax Medical Center as a rental asset,” Mr. Pitsiokos noted. “This property has a strong occupancy history, and we are confident that it will lease up quickly. We look forward to building on our past success as a responsive, hands-on owner that is highly in tune with the needs of physicians and their patients.”