10 Feb BG Capital Announces $77 Million Purchase of Constitution Health Plaza in South Philadelphia
Significant commercial real estate transaction within Philadelphia’s booming healthcare industry will expand the variety of healthcare and life sciences services in the building and attract new tenants
PHILADELPHIA, Pa. (February 1, 2022) –BG Capital LLC announced today the $77 million purchase of Constitution Health Plaza, a 3.41-acre site containing a 295,000 square foot medical office building and 425 spot on-site garage parking structure located in South Philadelphia. Major building tenants include the City of Philadelphia, Malvern Behavioral Health, University of Pennsylvania Medicine, Mercy Health Systems, and the Kidney Center of South Philadelphia. This significant transaction is a joint venture partnership between The Hampshire Companies, a New Jersey-based commercial real estate company, and its international investment partner, Arbah Capital.
BG Capital brings their operational experience and expertise in medical office development and management to this already vibrant and successful medical office campus. The transaction will further expand the variety of healthcare services in the building by attracting new tenants and strengthening relationships with existing tenant providers. Current renovations to the office spaces include:
- 30,000 square foot renovation of new office space for Malvern Behavioral Health on the 3rd and 4th floors of the building.
- 40,00 square foot full renovation for the City of Philadelphia to build out a public health lab on the 2nd floor of the main building and a pharmacy on the 2nd floor of the North building. This transaction and the development of the new public health lab space within the building will attract tenants who are more focused in life sciences, further establishing Philadelphia as a leader in this field and further establishing BG Capital as a prominent healthcare owner and operator in the city. “We are excited to welcome Constitution Health Plaza and the current management team to the BG Capital family,” said Joe Byrne, managing partner at BG Capital. “We look forward to maximizing the potential of this landmark South Philadelphia Medical Center.” The building’s total gross square footage, including the parking garage, is 513,963 square feet. Total rentable square footage in 281,207. The office building is currently 94.9% leased.
ABOUT BG CAPITAL
BG Capital was founded in 2015 by Joseph Byrne and Daniel Govberg. BG Capital is a full-service real estate investment and development firm focused on the acquisition, development, and management of commercial assets throughout Tristate area. The Company currently has over $250 million invested in real estate holdings, primarily in the multi-family, industrial and medical office asset classes. Commonwealth Campus is one of the largest and latest developments in the BG Capital portfolio and the company’s first major investment in the medical office and healthcare space. BG Capital is quickly becoming one of the most prominent commercial developers in the Philadelphia region.