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Monday, May 29, 2023

Covina Medical Site Fetches $40 Million

Irvine-based IRA Capital has purchased a 64,000-square-foot medical office building in Covina for $40 million.

DaVita Inc. sold the building, which is fully leased to Magan Medical Clinic Inc. The location features more than 50 physicians and 20 specialties.

Stan Johnson Co.’s Scott Briggs and Kelly Largent represented the buyer and the seller in the transaction.

Magan Medical, which has more than 20,000 patients, was recently acquired by OptumCare, a subsidiary of UnitedHealth Group.

The Covina property, at 420 W. Rowland St., was recently renovated.

IRA Capital is active in medical office space acquisitions. The property is IRA Capital’s sixth acquisition in 30 days for a combined $150 million. One of its most recent acquisitions was a building leased to St. Joseph Health in Orange County.

IRA Capital Partner Amer Kasm said in a statement that the company was interested in the building’s location, UnitedHealth’s investment in the building and in backing a long-term lease.

Founded in 2010, IRA Capital focuses on medical real estate assets and has purchased more than 6 million square feet in 25 states. Its portfolio is valued at more than $2 billion.

Health care facilities and medical office space are in high demand in L.A.

The biggest sale in the space this year was the 381-bed St. Vincent Medical Center at 2131 W. 3rd St., two adjacent medical office buildings, an adjacent school, and a retail building that sold for a combined $135 million. Patrick Soon-Shiong purchased the properties from Verity Health System of California Inc.

The hospital has a temporary lease with the state to treat Covid-19 patients.

The Wilshire Medical Center at 6200 Wilshire Blvd. also sold this year for $54.3 million. Crescent Heights purchased the 113,000-square-foot Mid-Wilshire property from Wilshire Center Building.

The buyer plans to spend roughly $100 per square foot to renovate the site, which is only 46% occupied, according to CoStar Group Inc.

Other groups are developing new properties.

Downtown-based Inception Property Group plans to build a roughly 151,000-square-foot outpatient medical office and senior living project at 1334-1356 S. Flower St.

Westwood-based Stockdale Capital Partners has plans for a 145,000-square-foot medical office building at 656 S. San Vicente Blvd. near Beverly Hills.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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