Harrison Street Buys Two LA Medical Office Properties for $156M
Stockdale Capital Partners has sold two Los Angeles medical offices to Harrison Street for $156 million.
The Chicago-based investment manager Harrison Street picked up 9090 Wilshire Boulevard in Beverly Hills and 2825 Santa Monica Boulevard in Santa Monica from Stockdale in a deal that closed late April, according to Stockdale and The Real Deal. The properties comprise a combined 107,000 square feet.
“The sale of these two prime West L.A. properties is part of Stockdale Capital Partners’ continued medical office strategy,” Stockdale’s Dan Michaels said in a statement. “Being able to execute our value-add initiatives, which included a renovation of both assets, as well as capitalize on the growing demand for medical office product has enabled us to generate a significant return on our investment.”
Los Angeles-based Stockdale bought both properties for $88.8 million in 2015, according to TRD. The 55,000-square-foot 2825 Santa Monica Boulevard is mainly leased to UCLA Health while the 49,000-square-foot 9090 Wilshire Boulevard is fully occupied by Cedars Sinai, according to Stockdale.
The purchase closed days after news came out that Harrison Street sold off a 27-property health care portfolio spread across 10 states to NorthWest Health Care Properties for $600 million, Commercial Observer previously reported.
“This is an exciting transaction that builds on our west coast medical office portfolio and highlights Harrison Street’s track record of delivering attractive core real estate opportunities for our investors,” Harrison Street’s Mark Burkemper said in a statement about the Los Angeles deal. “The properties are located in capacity constrained, affluent LA submarkets with favorable long-term demographic characteristics, and are affiliated with Cedars-Sinai and UCLA Health, two world-renowned health systems.”
CBRE’s Chris Bodnar brokered the sale of the Los Angeles properties.
“It’s incredibly rare for two assets of this caliber to be marketed as a portfolio,” Bodner said in a statement. “This was truly a once-in-a-generation opportunity.”
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