A Hospital District Just Paid $69M for Class B Office Nobody Wanted

The South Broward Hospital District has paid $69 million for Venture Corporate Center, the three-building office park on South Park Road in Hollywood that sits directly across from Memorial Regional Hospital. The deed recorded in Broward County on September 11 names VCC Owner LLC as the grantor and carries a consideration of exactly $69,000,000. The district is the public body that operates Memorial Healthcare System and is the name that holds title on its deeds.

Why it matters

This is a health system taking 271,205 square feet of early-1980s Class B office off the market in one instrument, on a site it cannot replicate: the buildings are across the road from its own hospital campus. For anyone underwriting Broward office, the price is the part worth writing down. At about $254 a foot for 1982 and 1984 product, the district paid roughly 38 percent more than the $50 million the sellers carried on the same parcels from August 2021, in a stretch when Class B suburban office has been the asset class everyone has been told to avoid. Adjacency changed the buyer pool. A hospital that needs contiguous space next to its emergency department is not underwriting this as office, and it will outbid anyone who is.

The numbers

The Broward County Property Appraiser records the park as three four-story buildings at 3440 Hollywood Boulevard, 200 South Park Road and 300 South Park Road, built in 1982, 1984 and 1984 and totalling 271,205 square feet across folios ending 010, 011 and 012. The deed is indexed as a multi-parcel conveyance. The selling side was VCC Owner LLC, a Delaware entity whose sole manager is Venture Corporate Center LLC, alongside co-owner OPIC VCC LLC, whose manager is Jeremy Jackson. The appraiser’s roll still showed the sellers as owners of record days after the deed recorded, which is the usual lag between the recorder and the tax roll rather than a contradiction.

What’s next

The question for the Hollywood submarket is what happens to the tenants. A multi-tenant Class B park bought by the hospital across the street is unlikely to stay multi-tenant indefinitely, and every square foot the district converts to its own clinical or administrative use is a square foot of competing supply that leaves the market. Watch for building permits on the three folios, which would be the first hard signal of conversion, and for any lease expirations that are not renewed. For developers holding older office within walking distance of a major hospital campus anywhere in South Florida, this trade is the comparable to cite.