Investment Playbook: 62 Brown, Haverhill Massachusetts
- Jan 6
- 5 min read
Updated: 2 days ago
Turning a Stalled Deal into a 381% NOI Success Story
Executive Summary
What happens when your institutional capital partner walks away from a deal just before the finish line? If you're Thomas Park, you don’t fold, you double down.
The acquisition of 62 Brown began as part of a two-asset strategy designed to blend risk and reward. But when the original partner backed out, Thomas Park didn’t blink. They pivoted, recalibrated, and went all-in on the riskier of the two assets: 62 Brown, a value-add outpatient medical office building in Northern Massachusetts.
What followed was a masterclass in nimble execution. Thomas Park teamed up with Echo Real Estate Capital Inc., restructured the capital stack, and unleashed a focused value-add playbook: leasing, renovations, and disciplined asset management. By 2025, occupancy jumped from 63% to 89%, NOI surged 381%, and the building exited into institutional hands, delivering a 1.92× equity multiple and a $9.575 million sale.
Key Metrics
NOI: 381%
Occupancy: 69% → 90%
WALT: 1.95 YR → 5.85 YR
Equity Multiple: 1.92x
Exit Price: $9.575 M
Healthcare Thesis
Thomas Park Investments didn’t stumble into healthcare real estate, they ran toward it.
With U.S. demographics aging and healthcare pushing hard into outpatient settings, Thomas Park saw a sector primed for durable growth. Led by principals EJ Rumpke and Alex Kopicki, the firm leaned into the complexity and resilience of medical office buildings, betting on a high-barrier, low-volatility asset class even as the commercial office world wobbled.
U.S. Outpatient Visits vs Hospital Admissions
But 2020 was no easy time to be a new sponsor. No track record. No past exits. Every deal required a battle, not just to win, but to prove you belonged at the table. From lease admin to accounting, the team had to build muscle while running sprints. Still, the formula was simple: bring the right deals, and the right partners will eventually show up. 62 Brown was meant to be that kind of deal.
Why Healthcare Real Estate?
Surging
Healthcare Demand
Rising Patient
Spending
Shift Toward
Off-Campus Facilities
Expanding
Addressable Market
Opportunity Identification
62 Brown wasn’t a screaming obvious win, it was messy, opaque, and brimming with risk. But that’s exactly what made it compelling. Initially part of a two-asset portfolio, the deal paired a core-plus MOB in Howard County with 62 Brown, a struggling medical building in Northern Massachusetts anchored by a financially shaky tenant: Steward Health.
The logic was smart, blend risk and stability, hedge the downside, and invite institutional capital to the table. But it was 62 Brown that held the real potential. Situated next to Holy Family Hospital, tied by a skywalk, with Certificate of Need (CON) constraints limiting supply and 96 dedicated parking spaces, this was a fortress if you could stabilize it. The price was well below replacement cost, and the turnaround play was clear: lease it, fix it, flip it.
Howard County Asset | 62 Brown Asset | |
Square Footage | 38,166 | 59,601 |
Building Vintage | 1988 | 2005 |
% Occupied | 100% | 63% |
% Leased to Hospital | 45% | 29% |
NOI | $711,465 | $221,557 |
Challenges Encountered
Deals like this don’t get done without bruises. Raising institutional capital for a $4 million building is like using a forklift to move a suitcase, overkill. The economics didn’t pencil for big funds, and without a “round trip” under its belt, Thomas Park still carried the execution risk stigma.
Then came the gut punch: their institutional JV partner bailed, citing short WALT and credit jitters with Steward. The PSA was signed. Clock ticking. Deal in limbo. Thomas Park could’ve walked, but instead, they hustled.
Enter Echo Real Estate Capital Inc., a co-GP with similar entrepreneurial spirit. Together, they rewired the capital stack, added 65% leverage at a fixed 4.75% rate, as Thomas Park kept the REIT seller warm with steady communication. The Howard County MOB was set aside, its stability less valuable without the institutional partner in the mix. The plan pivoted: drop Howard County, go all-in on 62 Brown, and prove they could execute without a net.
Decision to Focus on 62 Brown
Cutting the portfolio in half wasn’t defeat, it was strategy. By narrowing focus to 62 Brown, Thomas Park streamlined its execution, simplified the equity story, and aligned tighter with the capital they could actually close with. Echo Real Estate Capital Inc. brought investor relationships, Thomas Park brought the deal and the plan. The joint venture wasn’t just necessary, it was catalytic.
Capital Stack
Senior Debt $3M
Good News Money $1M
Equity $2.2M
Investment & Execution
Diligence flagged the obvious: short leases, uncertain tenants, and a soft local leasing market. But it also revealed opportunity. Steward’s ties to nearby facilities provided scale, and the leasing gap could be closed with hustle.
Thomas Park ditched the national brokerage route and went grassroots doing direct-to-tenant outreach, local broker hustle, and old-school relationship-building. They structured creative TI packages and demanded term commitments. Every deal signed lengthened the WALT, fattened the NOI, and fortified the exit. Still, the strategy carried real risk. Without leasing momentum, the short WALT could have stalled the business plan and forced a longer, less efficient hold.
The value-add plan was tactical: $367K in upgrades across HVAC, corridors, signage, and common areas, all delivered with surgical precision to avoid tenant disruption. Leasing climbed from 63% to 89%, with major wins like Northeast Rehabilitation and the Social Security Administration anchoring a stronger tenant mix.
Capital Improvements
Paint | $88,020 | |
Carpet | $48,212 | |
Window Sills | $14,420 | |
Elevator Cabs | $33,150 | |
Cooling Tower | $81,364 | |
Fire Pump | $40,883 | |
Interior Signage | $6,725 | |
Furniture | $8,446 | |
Parking Lot Reseal/ Restrip | $10,182 | |
Concrete/ Sidewalk | $35,801 | |
Total | $367,203 |
Financial Performance & Exit (2025)
By 2025, the results spoke loudly: $852K in NOI, 5.23 years WALT, and a $9.575 million sale price, well above projections. Investor equity multiple hit 1.92x. A turnaround story? Yes. But more importantly, it was a credibility milestone. The market noticed. So did capital partners.
2021 | 2025 | |
% Occupied | 63% | 89% |
NOI | $221,557 | $852,173 |
WALT | 1.95 Years | 5.23 Years |
Purchase/ Disposition Price | $4,500,000 | $9,575,000 |
Conclusion
The acquisition and repositioning of 62 Brown demonstrated Thomas Park’s ability to navigate capital challenges, execute a targeted leasing strategy, and deliver strong financial returns. By implementing strategic capital improvements, securing high-quality tenants, and timing the exit effectively, the firm was able to transform a high-risk asset into a stabilized, institutional-grade investment. The lessons learned from this transaction have since influenced Thomas Park’s broader investment strategy, which has been positioning the firm for continued growth in the medical office sector.
Lessons Learned
Small deals and institutional capital rarely mix - align size with capital type, or prepare to pivot.
Active asset management isn’t optional - it’s the lever that turns a C asset into an A-grade exit.
Optionality matters - Relationships and flexibility in structuring are what kept this deal alive.
Partnership & Investment Opportunities
At Thomas Park, we build partnerships rooted in trust, transparency, and performance. We work alongside investors, physicians, and capital partners who share our long-term view of value creation in healthcare real estate. To learn more about upcoming opportunities or to discuss a potential collaboration, contact our investment team.
Contact
Alex Kopicki
CIO, Principal
240-539-3785
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