A partnership between Morgan Stanley and Meridian has purchased the Beverly Hills Medical Plaza building for $81.5 million.
The property, at 150 N. Robertson Blvd. in Beverly Hills has 67,510 square feet of office space leased to doctors and other medical tenants. More than half of the tenants are affiliated with Cedars-Sinai.
“Beverly Hills Medical Plaza was attractive to us for a variety of reasons,” R.J. Sommerdyke, Meridian’s vice president of acquisitions, said in a statement. “In addition to its excellent location, the property has a very strong tenant roster. Tenants include an on-site surgery center, cardiology, pediatrics, internal medicine, orthopedics, gastroenterology and more.”
The property, which was sold by a family office, was 88% leased at the time of the sale. It has three levels of subterranean parking.
“Our acquisition team has been tracking this property for years,” John Pollock, Meridian’s chief executive, said in a statement. “This is a generational asset in a highly coveted market with extremely high barriers to entry, so it’s very rare when a property of this profile comes available. We were finally able to secure the building in an off-market transaction and we couldn’t be more thrilled.”
The seller, who was also the developer, had owned the property since 1989. It was designed by Gensler and sits on almost a full acre.
The buyers plan to make some improvements to the building.
“The previous landlord took great pride in the property, and it has been very well maintained,” Sommerdyke said in a statement. “Meridian intends to conduct capital improvements that will modernize common areas and will implement modest changes in operations to improve the tenant and patient experience.”
Newmark Group Inc.’s Kevin Shannon, Rob Hannan, Ken White and Laura Stumm represented the seller in the transactions. Newmark’s Steven Salas advised and will be the leasing agent for the property. Meridian was self-represented.
“Investment capital remains highly motivated to acquire premier, well-located medical office product post-pandemic because of the vital in-person nature of the patient and doctor relationship,” Hannan said in a statement. “The medical office sector provides the resilient, safe harbor profile desired by many investors in today’s capital markets landscape.”
The buyers, according to Newmark, could eventually raise rents.
“With its unrivaled points of entry, be it the porte cochere or the grandiose three-story atrium lobby, in concert with its proximity to Cedars-Sinai, 150 North Robertson provides one of Beverly Hills' best tenant and patient environments,” Salas said in a statement. “Morgan Stanley and Meridian have acquired an irreplaceable gem.”
