Stockdale Capital Plans New Medical Building

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Stockdale Capital Plans New Medical Building
Health Plan: A rendering of Stockdale Capital Partners’ planned 145

Westwood-based Stockdale Capital Partners is banking on increased demand for medical office space.

The investment firm plans to build a 145,000-square-foot medical office building at 656 S. San Vicente Blvd. in Beverly Grove.

The property, which will have 5,000 square feet of retail space, is expected to open in 2022. It will replace a Big 5 Sporting Goods Corp. store and an office property.

Stockdale Capital Partners says the building will be the area’s first new major outpatient medical office facility in nearly 20 years.

“There is a growing need for medical office space to be closer to the patients (for) infill medical offices,” said Dan Michaels, a managing director at Stockdale Capital Partners.

“If you look at all the development across Southern California, there is little to no medical office,” he added. “There’s been virtually no developments. The reason why is it is very restrictive from a zoning standpoint.”

Michaels said medical office buildings have higher parking ratio requirements than other buildings, which Stockdale Capital is working to meet.

The project is going through the entitlement process, which will include public hearings.

Stockdale Capital Partners already owns several medical office buildings in the area that “cater to fairly acute medical programs,” Michaels said. Those buildings are either offices that were converted to medical office buildings or old properties that the company renovated.

Stockdale Capital Partners is hoping to bring a variety of medical services to the facility and to partner with at least one large medical provider for the ground-up development.

“There is virtually no vacancy in all of West Los Angeles for medical office buildings,” Michaels said. “This will be some of the only vacancy that comes online to service the community,”

Stockdale Capital Partners will also be involved in day-to-day operation of the building.

The project, which is being designed by ZGF Architects, will be curved and have setbacks and step terraces.

It will be able to host a single health care group or a variety of medical practices. Floor plans will be in excess of 25,000 square feet.

Stockdale Capital Partners is a big player in the medical office space.

Earlier this year, the company sold the 147,000-square-foot 3rd Street Medical Center to Healthcare Trust of America Inc. for $85 million.

The facility was only 68% occupied when it was purchased by Stockdale Capital Partners in 2016 for $52.3 million. It was more than 90% occupied at the time of the sale.

Michaels said zoning restrictions allowed the company to update the building without any competition.

Stockdale Capital Partners’ medical offices in L.A. include 9090 Wilshire Blvd. in Beverly Hills, a nearly 49,000-square-foot building the company purchased in 2015 that is fully leased to Cedars-Sinai Health System, and 2825 Santa Monica Blvd. in Santa Monica, a nearly 55,000-square-foot building that is mostly leased to UCLA Health.

Both acquisitions were part of a $100 million joint venture partnership with Carlyle.

Stockdale Capital Partners invested with Quilvest in Gresham Station Medical Plaza in Portland, Ore.

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