Investment Activity Heats Up in SoCal Medical Office Market

Medical office has been one of the best performing asset classes through the recent market dislocation caused by the pandemic. In Southern California, the strong fundamentals have attracted investors, and at the end of the year, both Los Angeles and Orange County saw significant medical office deals close.

In Los Angeles, 4343 Lankershim in North Hollywood and 150 N. Robertson in Beverly Hills traded hands in the fourth quarter at record low cap rates for medical office in the LA region, according to data from JLL. Investment activity was strong throughout the year. Other major deals include LaSalle Investment Management’s purchase of a 49,721-square-foot, class A medical office building in Beverly Hills, CA for $74.4 million from UBS Realty Investors, and Meridian’s acquisition of the Beverly Hills Medical Plaza, a three-story, 67,510-square-foot class-A medical office with 88% occupancy, for $81.5 million in partnership with an unnamed institutional investor. In Orange County, trophy asset Newport Lido Medical Center in Newport Beach sold in what was one of the largest medical office deals in the history of the sector.