Newmark Grubb Knight Frank (NGKF) Global Healthcare Services represented Accretive Realty Advisors, Inc. in the sale of Aliso Viejo Medical Center, a 90-percent-occupied, 27,192-square-foot Class A medical office building (MOB) located at 24502 Pacific Park Drive in Aliso Viejo, Calif. Garth Hogan, executive managing director, and Todd Perman, CCIM, executive managing director, worked with Richard Bland of Cornish & Carey Newmark Knight Frank on the transaction after renewing the property’s largest tenant earlier this year. Guggenheim Realty Group acted as advisor for the buyer, a private equity fund.
Accretive Realty purchased the three-story MOB in August 2010 as a value-add project and immediately embarked upon a substantial renovation of the building entry, main lobby, elevator, common restrooms and HVAC system. In August 2013, Mr. Hogan, on behalf of the seller, completed a five-year lease renewal with Kaiser Permanente for approximately 19,000 square feet, or 70 percent of the property’s rentable space. Kaiser has been operating its multi-specialty clinic outpatient and primary care services at the location for more than 15 years and the renewal positioned the property for sale as a stable medical office asset.
“Medical office has emerged as a strong choice for investor portfolio diversification,” Mr. Hogan said. “Historically, multifamily has been the darling for investors, but we are seeing a swing toward the stability of medical office, especially in an attractive market such as south Orange County.”
He continued, “As the Affordable Care Act is implemented, and as we face the reality of an aging population that desires high quality, well-located healthcare, the demand for suburban medical office will only grow. For investors, this will further increase the appeal of modern and improved medical assets in areas where demographics drive demand for healthcare. With a strong major tenant, Aliso Viejo Medical Center is the perfect example of an MOB that matched these high demand characteristics.”
So far this year, NGKF Global Healthcare Services has leased more than 200,000 square feet of medical office space in Southern California and has sold more than $300 million in healthcare properties nationally.
About Accretive Realty Advisors, Inc.
Accretive Realty Advisors, Inc. is a commercial real estate management and development company located in Irvine, California. Accretive was formed in 2003 to acquire, develop and manage medical assets throughout California. Accretive maintains a multi-disciplinary team of professionals that combine over 60 years of realty expertise in the management, development, accounting and marketing of commercial real property and medical assets. Accretive key executives and staff have extensive experience in the entitlement, development planning, and construction including extensive experience in office building and tenant improvement construction of complex medical related uses. For further information on Accretive, visit www.accretiverealty.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 12,000 professionals, operating from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.