A medical office portfolio consisting of eight properties in the San Fernando Valley region and the San Francisco area has sold for an undisclosed price.
The two Valley properties are both located in Van Nuys: Valley Medical Plaza 1 at 14600 Sherman Way and Valley Medical Plaza 2 at 14624 Sherman Way.
Tenants include leading regional health systems such as Kaiser Permanente in the San Fernando Valley and Marin Health, Providence Santa Rosa Memorial Hospital and CommonSpirit Health at the Northern California properties.
The portfolio has a total of 380,000 square feet. The portfolio was managed in a joint venture with investment management firm Harrison Street.
Chris Bodnar, Lee Asher, Jordan Selbiger, Ryan Lindsley, Sabrina Solomiany and Zack Holderman of CBRE Group’s U.S. Healthcare & Life Sciences Capital Markets team represented Los Angeles-based Pinnacle Capital Management Services in the sale of the assets.
“This was a unique opportunity for an investor to acquire a medical office portfolio of this size in a state like California where ownership is traditionally very fragmented,” said Bodnar in a statement. “These are extremely high-barrier-to-entry markets, and we believe these assets are well positioned to continue to enjoy the historic resiliency of the medical office sector.”
The California portfolio also includes properties in Greenbrae, Santa Rosa, Alameda, Daly City and San Francisco. The seller had invested more than $17 million in capital during ownership, including recent building renovations, tenant improvements and leasing commissions. About half of the portfolio was occupied by health systems and investment-grade tenants.
“Our partnership with Harrison Street provided committed capital and informed, capable and dedicated colleagues to support challenging redevelopment and re-leasing initiatives across our portfolio,” said Paul Slye, chief executive of Pinnacle. “The experienced team at CBRE helped us assess and enter the market to optimum results for our investors, and for our valued tenants.”
