MOBs Hot in '15
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SoCal medical office buildings are ending the year hot, and it’s going to stay that way in ’15, NGKF executive managing director Garth Hogan tells us.
Recently Garth (snapped at a Bisnow event) and colleague Todd Perman repped Accretive Realty Investment in its sale of La Quinta Medical Center in Riverside County for $25M. The property, at 47647 Caleo Bay Dr, is 98% occupied. According to Garth, the property traded at a 6% cap rate, which is partly a function of its location in the fastest-growing portion of the Coachella Valley, but also its visibility. More than 200,000 people live in the immediate market area and 35,000 cars pass the building every day, Garth notes.
Accretive Realty bought the 41k SF La Quinta Medical Center as a value-add in 2007, when it was 25% leased. Its current tenant roster includes three clinics affiliated with Desert Regional Medical Center: the Comprehensive Cancer Center; the Institute of Clinical Orthopedics and Neurosciences; and La Quinta Imaging. The deal marks NGKF Global Healthcare Services' fourth disposition for Accretive Realty in SoCal in the last 12 months, following the sales of three MOBs in OC that fetched more than $41M in separate sales to an unnamed private investor.