A downtown health care facility, the 3rd Street Medical Center, sold for $85 million, seller Stockdale Capital Partners announced Sept. 10.
The buyer was Healthcare Trust of America, Inc., records show.
Stockdale purchased the roughly 147,000-square-foot property at 2100 W. 3rd St. in 2016 for $52.25 million, according to CoStar Group Inc. records.
At the time, the medical center was only 68% occupied. It is now more than 90% occupied. Tenants include UCLA Health, AltaMed, Children’s Hospital Los Angeles and Providence Health.
“We saw strong intrinsic value in the location, where zoning restrictions and lack of medical office supply allowed us to reposition the asset without threat of competition,” Stockdale Managing Director Dan Michaels said in a statement. “The disposition of 3rd Street Medical Center allows us to realize material value after completing an extensive renovation program and driving enhanced cash flow through a well-executed leasing plan.”
CBRE Group. Inc’s Chris Bodnar, Lee Asher, Ryan Lindsley, Sabrina Solomiany, Angie Weber and Dana Nialis represented Stockdale in the transaction. The buyer was self-represented.
“Given the lack of supply of core medical product — both locally and nationally — we received significant interest in the offering from a variety of capital sources, including health care REITs and institutional funds,” Bodnar said in a statement.
3rd Street Medical Center was built in 1991 and expanded in 2007. It is adjacent to St. Vincent’s Medical Center.
Commercial real estate reporter Hannah Madans can be reached at [email protected]. Follow her on Twitter @HannahMadans
