Stockdale Capital Partners has sold two medical office properties in Beverly Hills and Santa Monica in a $156 million deal.
The total square footage of the properties, located at 9090 Wilshire Blvd. in Beverly Hills and at 2825 Santa Monica Blvd. in Santa Monica, is about 107,000 square feet.
Dan Michaels, managing director of Stockdale Capital Partners, said the sale, to an undisclosed buyer, is part of Stockdale’s continued medical office strategy.
“Being able to execute our value-add initiatives, which included a renovation of both assets, as well as capitalize on the growing demand for medical office product has enabled us to generate a significant return on our investment,” Michaels said in a statement.
Chris Bodnar, vice chairman of CBRE Inc., the Dallas-based commercial real estate services and investment firm, who handled the sale, said that it was rare for two assets of this caliber to be marketed together.
“This was truly a once-in-a-generation opportunity,” Bodnar said in a statement.
The 9090 Wilshire property is a three-story medical office building located at the corner of Wilshire Boulevard and Doheny Drive and is close to the Cedars-Sinai Medical Center.
The property represents one of only a handful of true, institutional-quality medical office buildings in the entire city of Beverly Hills, according to a release from Stockdale and CBRE.
Due to the city’s medical office moratorium enacted in 2011, a shortage of medical office space has driven vacancy rates below 3%, all while pushing medical office rents to some of the highest levels nationwide, according to the Stockdale release.
The company purchased the building in 2015 and it is leased to Cedars-Sinai Health System, which operates an oncology clinical and outpatient treatment center. It is also home to a ground-floor surgery center anchored by some of the most prolific surgeons in the Beverly Hills area, specializing in ophthalmologic and orthopedic procedures, the release said.
2825 Santa Monica Blvd. is a nearly 55,000-square-foot building that is mostly leased to UCLA Health.
The medical office and research building is anchored by UCLA’s Translational Genomic Research Program, which is focused on gene-specific cancer treatments and research. The property is just east of Providence St. John’s Medical Center and has prominent visibility and access from Santa Monica Boulevard, the release said.
Along with UCLA’s research facilities, the property also houses Dr. John Jain of Santa Monica Fertility, one of the Los Angeles area’s most preeminent fertility specialists. Angie Weber, first vice president of CBRE, who leased the properties on behalf of Stockdale, said both assets are extremely well located in strong, system-driven markets.
