$32M Buys Medical Office Building

BEVERLY HILLS, CA-Douglas Emmett Realty Fund 2002 has acquired a medical office building of more than 104,000 sf at 8920 Wilshire Blvd. from Southwest Value Partners XI for $32 million, according to Joel Frank of First Property Realty Corp., who brokered the transaction.Frank tells GlobeSt.com that the sale closed at an initial cap rate of just under 8%. The building, which is at the southeast corner of Wilshire Boulevard and La Peer Drive, is about half a mile from the Cedars Sinai medical complex. The seller had owned the property, a six-story building with a penthouse, for several years and had completed extensive renovations, including a seismic retrofit, Frank notes. Emmett struck a deal to buy the building as it was nearing completion of the renovations. Besides renovating the building, the seller had leased up about 7% of vacancy in the building, which was 96% occupied at the time of the sale.The Beverly Hills building was one of a number of medical office sales that have closed recently in Southern California, including LaSalle Investment Management of Chicago’s $95.5-million purchase of a five-building portfolio of single-tenant, triple-net-leased medical buildings totaling more than 287,000 sf at a site adjacent to Mission Hospital in Mission Viejo. John Smelter of Marcus & Millichap’s San Diego office represented the buyer and the seller, Mission Viejo Medical Development Co. LP. In another transaction, in Diamond Bar, Dr. David Lee’s Jamison Properties of Los Angeles purchased Diamond Bar Professional Center, a 34,863-sf medical office building located at 750 N. Diamond Bar Blvd., from Los Angeles-based Pacifica Capital Group for $4.1 million. The two-story, wood-frame structure, which was built in 1982, contains half medical and half office space. It was 90% leased at the time of the sale, which was brokered by Kevin Shannon, Mike Moore, Scott Schumacher, Amy McNamara and James Wynne of Grubb & Ellis.