Shields Health Care Group, New England Baptist Hospital and a group of physicians have sold their real estate holding in Dedham, raking in $34 million on the sale.
The three groups, which will still occupy the majority of the building in a lease, purchased the 66,000-square-foot property at 40 Allied Drive in 2013 to construct a joint imaging and outpatient surgical center.
The joint venture ownership entity sold the property to RREEF America LLC, a Deutsche Asset Management affiliate, for $34 million last week, setting a commercial real estate record in the Route 128 area of $515 a square foot.
“The sale of 40 Allied Drive permits the investors to maximize their investment while continuing to provide exceptional health care in a low cost setting with the nationally recognized New England Baptist, its physicians and Shields MRI,” saidTom Shields Jr., president and CEO of Shields Health Care Group.
According to New England Baptist, the hospital will take home 25 percent of the proceeds from the sale, which will go to pay off loans taken out to update the property and go to the hospital’s balance sheet.
Shields will take 33 percent of the sale and various physician groups and individual physicians will cumulatively take 42 percent of the sale price.
New England Baptist will continue to operate in majority of the building. The hospital operates eight surgical suites on the second floor, and also occupies some physical therapy space and three doctor’s offices on the first floor. Shields occupies approximately 10,000 feet of the building.
New England Baptist has entered into a 17-year lease with the new owners. Shields has entered into a four-year lease.