Sherman Oaks Medical Property Sells for $20M
C.A. Development Operations, a Los Angeles-based investment company, has picked up two medical office buildings in Sherman Oaks in the San Fernando Valley for $20 million, according to CBRE, which represented the seller, REIT HCP
in the deal.
The property, known as Sherman Oaks Medical Center, is comprised of two two-story buildings at 4835 and 4849 Van Nuys Boulevard totaling 78,000 square feet.
“This property presented the opportunity for the buyer to own an outstanding piece of real estate with tremendous future development potential in a prime location and in-place cash flow,” Bradford McCarthy, a senior vice president at CBRE, who represented REIT HCP, an Irvine, California-headquartered REIT that invests in real estate serving the healthcare industry in the U.S., with Cody Chiarella, said in a statement. “This is something many investors are seeking but is very hard to find in today’s competitive market.”
According to CBRE research, infill suburban office properties across Southern California have been appealing to a variety of investors as they tend to trade at a discount to replacement cost with good in-place cash flow at rents that have not yet met or exceeded the previous peak. As of the second quarter of 2018, the brokerage firm found that the Greater Los Angeles office market had 1.1 million square feet of overall positive net absorption year to date, evenly distributed throughout the region, including the San Fernando Valley, home to 4835 and 4849 Van Nuys Boulevard.