A New York investor has paid $134.8 million for four medical office buildings in Mission Viejo.
CBRE Investment Management bought the Mission Medical Center Buildings 1-3 at 27800 Medical Center Road and the Mission Medical Center Tower at 26732 Crown Valley Parkway, the Orange County Business Journal reported.
The seller of the 282,000-square-foot portfolio next to Providence Mission Hospital was Healthcare Trust of America of Scottsdale, Ariz., which in July merged with Healthcare Realty Trust of Nashville, Tenn.
The three Class A medical office buildings total 164,285 square feet, according to a Healthcare Trust brochure. The five-story Class A tower has 119,497 square feet.
The deal, which comes out to $477 per foot, is one of the largest in Orange County this year.
“Medical office is a new strategy for our fund,” said Larissa Belova, portfolio manager for CBRE, in a statement. “Our strategy focuses on assets located within or adjacent to thriving hospital systems that create ecosystems that benefit doctors and their patients.”
The Mission Viejo complex was recently renovated with new gurney-sized elevators, HVAC roof systems, LED lights and recycled water landscaping.
CBRE Investment Management, which has nearly $147 billion in assets under management as of June 30, is an affiliate of CBRE Group, the world’s largest commercial real estate services and investment firm. The firm, which moved its headquarters from Los Angeles to Dallas in 2020, saw 2021 revenue growth of 16 percent to $27.7 billion.
CBRE is also the largest commercial broker in Orange County, reporting $6.9 billion worth of sales and leases for 2021, according to the Business Journal. It’s also the county’s third-largest property manager, managing 15.8 million square feet.
CBRE said medical office assets are expected to outperform the office market because average vacancies are 2 percent lower than traditional offices, as medical practitioners often have to report to the office.
— Dana Bartholomew
The post CBRE buys medical offices in Mission Viejo for $135M appeared first on The Real Deal Los Angeles.
Powered by WPeMatico