At the time of the sale, the 50,986-square-foot property at 2701 W. Alameda Ave. was more than 90% occupied and leased to 22 medical tenants, mostly doctors with Providence Saint Joseph Medical Center across the street.
CBRE Group Inc.’s Mark Shaffer, Anthony DeLorenzo, Chris Bodnar, Lee Asher, Gerard Poutier and Cody Chiarella represented the seller, a private real estate investor.
It was the first time the property had been up for sale since its construction more than half a century ago.
“The transaction received strong interest and multiple offers,” Shaffer said in a statement. “Well-located assets supported by strong underlying fundamentals continue to command robust buyer interest. In this case, the property’s value-add proposition in the near term provides a compelling investment opportunity for the new owner to boost future value.”
Los Angeles’ medical office vacancy rate fell to 10.5% during the first half of the year, well below overall market vacancy rates, according to data from CBRE.
The market’s vacancy rates in Burbank, according to the brokerage, is at just 4.9%, among the tightest in the county. “Health care investors continue to target markets with strong tenant demand and proximity to a dominant hospital campus,” Bodnar said in a statement. “The 2701 W. Alameda property is very well-positioned for the future.”
Medical office space, experts say, is extremely desirable as medical care has been transitioning away from hospital settings into offices. This type of asset is far more expensive to build out than traditional office space, so tenants tend to stay put for long periods of time.
The Burbank asset is not the only medical office space GPI has purchased this year. In February, the company bought a roughly 30,000-square-foot medical office building in Santa Monica for $22.5 million from Lexham Realty Management.
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