A Medical Device Daily

Gyrodyne Company of America (Long Island, New York), a real estate investment trust, has agreed to purchase Fairfax Medical Center (FMC; Fairfax, Virginia), a 59,108-square-foot medical office property, for about $13.2 million. Gyrodyne said it anticipates completing due diligence and closing on the purchase on or about March 31 but in no event later than April 30.

"Gyrodyne is very pleased with the acquisition of this property, which advances our medical office investment strategy," said CEO Stephen Maroney."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."

In 2007, Gyrodyne purchased 10 buildings in the Port Jefferson Professional Park in Port Jefferson, New York. Last year, the company bought Cortlandt Medical Center (Cortlandt Manor, New York). The Fairfax property represents the firm's first asset in the Washington metro area.

Fairfax Medical Center serves as home to 28 medical tenants. The property includes two four-story buildings on about 3.5 acres.

Upon closing on the FMC purchase, Gyrodyne anticipates it will launch an aggressive leasing program. FMC had halted lease renewals there to accommodate a condominium conversion, prior to the market's slowdown. The current occupancy rate is 84%.

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