Fertility Clinic Inks $4M Deal

SAN DIEGO-Fertility Specialist Medical Group has signed a deal to take space at Frost Street Medical Center, bringing the medical complex to roughly 90% occupancy. In the deal, Arlene J. Morales Inc. dba Fertility Specialist Medical Group signed a 12-year, $4.2 million lease for just over 10,000 sf. Mark Mattis, vice president with the Los Angeles office of PM Realty Group represented the owner, medical REIT Health Care Property Investors of Long Beach. Jim Laing and Dan McCarthy of locally-based Burnham Real Estate represented the fertility group, whose new space will offer surgery center and an on-site lab.While the size of the deal may not seem that large, it is for the medical complex, according to Mattis who tells Globest.com that a “10,000-sf deal on that campus is significant.” He says the “bread-and-butter” tenant at the complex is the single or double occupancy doctors who take up from 1,000 sf to 3,000 sf. Located across the street from Children’s Hospital and Sharp Memorial Hospital, Frost Street Medical Center counts three medical buildings totaling 175,000 sf owned by HCP. The campus was developed over time with one building going up in the 70s, another in the late 80s and the facility being occupied by the fertility clinic in the early 90s. The campus has a fourth building, owned by Cambridge Development. The Texas-based outfit is developing another facility for the campus. The new building will count 100,000 sf at buildout and is roughly 55% preleased, according to Mattis. So far, Cambridge has completed a parking garage and will soon break ground on the building. Mattis expects Cambridge to complete construction on the site within 18 months.