Sales  ·  Commercial

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. 

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“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.