What would be the best structure to form this partnership (LLC, REIT, etc.)?

It's a SF I own outright in a 50/50 LLC partnership. 

One thing you should clarify is what you are seeking in the partnership and you believe the deal should break down. 

Networking and building partnerships is definitely key I can see.

In addition to the options mentioned, you might want to consider a partnership, and lease option.

Or is finding a partnership maybe my best bet here? 

@Leonard RobinsonYour personal CPA who knows how much income you make along with the type of income you make will likely make a better suggestion on entity type(whether you need it or not) than individuals on a message board here.With that said - it is normally not advisable to hold real estate within a corporation(C-Corp or S-Corp).It will likely also not impact your situation whether your real estate is held by you personally or within an LLC(disregarded or partnership).

If you hold title through an entity that files its own tax return, the figuring is done differently... there's a bit of an if/then flow chart we use:If the liability is in the individual (not the businesses name) we analyze the form 8825 from that entity (the "schedule e" that a business entity like a partnership uses).

Employment base seems fairly stable (government, banks, health system), and the hospital system appears to be growing with partnerships with Virginia Tech.

The first concern is whether you hold title together, as tenants in common, or through an entity, like a partnership or LLC.