A group of physician owners has chosen NGKF Capital Markets to market its 10-property, 61,504-square-foot health-system-leased portfolio located throughout Northern California’s wine country, which also offers future development opportunities, according to Newmark Grubb Knight Frank (NGKF).
Eight of the properties are located in Santa Rosa, Calif., adjacent to the Santa Rosa Memorial Hospital, and are anchored by an affiliate of St. Joseph Health System, a prime investment-grade credit tenant. These properties sit on more than 200,000-square-feet of developable land, which, over time, will likely become the site of a state-of-the-art healthcare campus. The largest of the Santa Rosa properties is 121 Sotoyome, an advanced radiation oncology and radiology services center, which comprises half of the portfolio’s total square footage. The remaining two properties are located in Petaluma, Calif., and Ukiah, Calif. The entire portfolio is 95 percent leased.
“This is a rare opportunity to have so much land assembled right next to a major hospital system,” said NGKF’s Evan Kovac, a managing director based in Newport Beach, Calif., whose team specializes in the sale of medical office buildings. “The long-term play is to redevelop the entire site and create a master-planned modern healthcare campus, with anywhere between 200,000 square feet and 500,000 square feet of medical office properties and healthcare facilities.
“This opportunity is unique in that while a future development will yield the highest and best use given the proximity to Santa Rosa Memorial Hospital, the current opportunity offers investors a highly secure and reliable long-term investment grade portfolio that has been historically well-leased,” he said.
Mr. Kovac and Associate Timothy Leber are working in conjunction with the NGKF Capital Markets team of Dan Cressman, Kyle Kovac and Mike Taquino in San Francisco on the assignment.
“Demand for medical office and healthcare investment opportunities is at an all-time high,” said Mr. Kovac.
He and Mr. Leber recently arranged the sale of the Desert Oasis Healthcare building in Palm Springs, Calif., on behalf of The Abbey Company. Chicago-based MB Real Estate acquired the 96,710-square-foot, LEED Silver-certified property that is fully leased to Desert Oasis Healthcare, the leading healthcare provider in Coachella Valley, Calif. They also represented Cypress West Partners in its purchase of Arrowhead Professional Park in Glendale, Ariz. The two-story, 40,000-square-foot property is located near three major hospitals and is 91 percent occupied.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets. For further information, visit www.bgcpartners.com.