GPI Companies Buys Burbank Medical Office for $24M
It was the first time in more than 50 years that the location was available for sale
By Greg Cornfield October 1, 2021 1:45 pm
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GPI Companies is the newest owner of a 51,000-square-foot medical office in Burbank, Calif.
The Los Angeles-based development and operating firm paid $23.9 million, or $468 per square foot, for 2701 West Alameda Avenue. CBRE (CBRE) announced the deal and represented the seller, a private investor. Records show the property belonged to an individual named Shawn Faeth.
The building is 90.4 percent leased to a mix of 22 medical tenants. Most of the space is occupied by doctors on staff at Providence Saint Joseph Medical Center, located directly across the street. The medical center is the primary market demand driver and one of the largest employers in the San Fernando Valley.
It was the first time in more than 50 years that the location was available for sale, according to CBRE. Property records show it was previously tied to William Faeth.
Health care employment and strong medical tenant demand have helped buoy the medical office market in Greater L.A. and drive modest rent growth in the region, according to CBRE. L.A.’s medical office vacancy in the first half of 2021 stabilized at 10.5 percent, and settled well below the overall office market vacancy. Specifically, Burbank has one of the tightest medical office vacancies in the county, at 4.9 percent.
“Health care investors continue to target markets with strong tenant demand and proximity to a dominant hospital campus,” said CBRE’s Chris Bodnar.
Bodnar, Mark Shaffer, Anthony DeLorenzo, Lee Asher, Gerard Poutier and Cody Chiarella with CBRE represented the seller.
GPI Companies is active around the county, from the coastal city of El Segundo to the San Fernando Valley. The developer is behind the 26-story tower development at the former Amoeba Records location in Hollywood, as well as the one of the transformation projects at the defunct Westside Pavilion mall next to the big redevelopment for Google by Hudson Pacific Properties.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
