Bucktown Medical Campus II is a healthcare campus comprised of two, single-story buildings totaling 69,314 SF and is located in Langhorne, PA approximately 20 miles northeast of Philadelphia. The single-story layout of the property works well for medical office tenants as it provides private ground-floor entrances that offer ease of access for their patients.
The Investment Team views the acquisition as an attractive opportunity to create a cohesive, local medical campus in the submarket, with synergies across two GCREIT owned properties, Bucktown Medical Campus I and Bucktown Medical Campus II. The upside potential is in converting traditional office and flex space into medical office use, a strategy that has already been proven out in the campus, which will result in higher rents, longer lease terms, and higher renewal probabilities.
At the time of acquisition, the property is leased to a mix of medical office, traditional office, and flex users. The investment strategy will be to increase medical office use percentage at the buildings over time, with the ultimate goal of creating a cohesive, local medical campus in the submarket.
The GCREIT has strong conviction in the value creation of combining two smaller office/medical/flex transactions into a larger campus, adding institutional quality healthcare management focused on expanding the medical tenancy and improving the campus feel of Bucktown I and Bucktown II Medical Campuses
The location is within 10 miles of nine regional hospitals and about one mile from the Jefferson Bucks Hospital, driving medical office demand in the area.
The property is located in a suburb of Philadelphia called Langhorne, PA in Bucks County, which is the third wealthiest and fourth most populous county in the state. Bucks County is located approximately 20 miles north of Center City Philadelphia and attracts residents with its quality of life, highly rated school districts, regional and retail dining options, and top-notch medical institutions.
The Property benefits from favorable population demographics given the median household income of $94k for Bucks County is greater than that of the state ($63k) and national ($66k) household income. The Property also provides tenants with good accessibility, as the Property is minutes from the I-95 interchange, which provides access to Center City Philadelphia to the south, Princeton to the north, and connectivity to the local area’s sizable population.