The 78,702-square-foot medical office building is located at 11645 Wilshire Blvd. and is owned by Boulevard Investment Group.
The loan came from life insurance capital invested and managed by Blackstone Real Estate Debt Strategies.
Jones Lang LaSalle Inc. represented the borrower. The JLL team was led by Marc Schillinger and Keith Rosso.
The Wilshire West Medical Tower is leased to medical office tenants.
“This is our third time financing this trophy asset, and we have never had stronger lender interest,” Schillinger said. “This request checked all the boxes, including dedicated high-net-worth sponsorship, and we were proud to be involved. I believe the pandemic illuminated that medical office is one of the most resilient asset classes and will continue to be a favored collateral type for lenders.”
Medical space has fared better than some other office assets during the pandemic. More medical operations are expected to move to offices in suburban areas near clients to limit the number of people going to hospitals for doctor visits.
Once a medical tenant signs a lease, there is incentive to stay.
It is significantly more expensive to build out medical office space than traditional office space. Sinks and specialty equipment require installation, meaning tenants often renew their leases rather than jumping to new locations.
There have been some noteworthy medical office building sales this year. LaSalle Investment Management acquired a Beverly Hills property at 9033 Wilshire Blvd. owned by UBS Realty Investors for $74.4 million.
The five-story office building has nearly 50,000 square feet of space and counts USC’s Keck Medical Center as an anchor tenant.
Brentwood-based GPI Cos. purchased a nearly 30,000-square-foot medical office building in Santa Monica for $22.5 million from Lexham.
The property is leased to Kaiser Permanente as well as medical specialists.
And MCDG Holding purchased a 28,295-square-foot mixed-use retail and medical office property in Koreatown for $15.3 million from EJS Properties.
It is located at 2970 W. Olympic Blvd.
