Lionstone Investments has scored a medical office property located on the Hoag Hospital campus in Newport Beach.
The Houston-based investor bought a two-building complex at 315 Hospital Road totaling 146,500 square feet, according to JLL, which brokered the deal.
Lionstone paid $125 million for the property in December, or around $853 per square foot, records show. The property was previously owned by an entity linked to C.B. Properties.
Lionstone’s investment shows demand for medical offices — a sector of the overall office market that continues to boom as the overall asset class lags. Northern California-based investment firm Meridian paid around $1,200 per square foot for a medical office that was about 88 percent leased near Cedars-Sinai Medical Center in Los Angeles.
The complex Lionstone just acquired is fully leased to healthcare tenants and serves as Hoag Hospital’s surgery center for Newport Beach. Prime Surgical also leases a center at the property.
The deal marks Lionstone’s entrance into the medical office sector, according to JLL’s Evan Kovac. JLL “received unprecedented investment demand from a wide range of investor profiles from institutional to ultra-high net worth,” he said in a statement.
Lionstone had about $9.1 billion in assets under management and owned around 18.7 million square feet of real estate across the U.S. as of March 2021, according to its website.
In California, the firm recently sold an 187,000-square-foot office campus in San Diego for an undisclosed sum to Hines, as well as a 14-building office campus in Milpitas for $170 million through a joint venture with Orchard Partners.
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