LOS ANGELES—An unnamed, private California LLC has acquired a 61,895-square-foot convalescent hospital for $14.75 million from a private family trust. The property houses both a skilled nursing facility and assisted-living facility, which are both triple net-leased. The sales price equates to $238 per square foot.
“Properties of this size in the Los Angeles basin area are rarely available for purchase, and this one has tremendous future development potential,” says Marty Cohan, a VP of Marcus & Millichap‘s West Los Angeles office who represented both the buyer and seller in the transaction. Ron Bender of Levene, Neale, Bender, Yoo & Brill LLP served as legal counsel for the seller.
Located in Valley Village at 5335 Laurel Canyon Blvd., the property was recently renovated by the seller. The assisted living facility has 49 beds and the skilled nursing facility has 201 beds. The property is zoned C-2 as a neighborhood business, and is set on just over 2 acres in close proximity to several public transit stations.
This acquisition is illustrative of increased investor interest in healthcare properties. For example, the long-vacant Century City Hospital inked $80 million in lease deals last year with several tenants, including UCLA Health System and Cedars Sinai Medical Center. Some say this heightened interest is due to the Affordable Care Act while others point to broader changes to the healthcare industry unrelated to the rollout of ACA. In an earlier interview about the changing healthcare landscape, JLL managing director Jason Clark told GlobeSt.com, “The ACA really wasn’t the catalyst to all of the changes going on in healthcare and healthcare real estate. We were already going down a path that was going to create major evolutionary changes in healthcare.”