IRA Capital Buys SoCal Medical Office for $38M
St. Joseph Hospital of Orange, the third largest non-profit health system in the country, sold the property and will remain the anchor tenant
IRA Capital, an Irvine-based equity firm, has purchased a medical office building in Southern California for $38.4 million.
The seller was St. Joseph Hospital of Orange, the third largest non-profit health system in the country, who will stay on as the anchor tenant. The property, at 2212 East 4th Street in Santa Ana, is located in Orange County.
“St. Joseph Hospital has occupied the property since 2008 and is currently on a 10-year, triple-net lease that eliminates significant rollover risks for the new owner,” said Gary Stache of CBRE (CBRE), which announced the deal and represented the seller, in a statement. “This long-term tenancy provides exceptional ease of ownership, durable positive cash flow and inflation-protected income.”
St. Joseph Hospital operates primary care services at the center. The 56,800-square-foot property includes a pharmacy and dialysis center, and the tenant recently completed a $8.5 million renovation at the three-story medical office.
CBRE’s team also included Anthony DeLorenzo, Doug Mack, Bryan Johnson and Chris Martin represented the seller. IRA Capital was self-represented, and the firm did not return a request for comment.
Demand for health care facilities has been on the rise in Southern California, helping drive office real estate activity prior to the spreading coronavirus, thanks to a growing senior population requiring more medical services.
In March, Manhattan Real Estate Holdings purchased a four-story medical office building with 59,400 square feet that was recently renovated in Huntington Beach. The deal with Vibe Boutique Office Properties closed for $20 million.