Medical Office Sale Provides Capital

Dennis Vaccaro, director of advisory services for Faris Lee Investments, represented Sanderson J. Ray as well as the 1031 Exchange buyer, Orange County-based Yorba Hawthorne LLC. According to Vaccaro, the property garnered eight offers, sold for a high price-per-square foot of $458 and closed at a 6% cap rate.

The asset is fully occupied by five tenants including Bristol Park Medical, a 17-year tenant that occupies 17,242 sf. Another major tenant is Irvine Diagnostics Center with 7,330 sf.

Vaccaro says that Faris Lee targeted 1031 exchange buyers in marketing the property, which offered a prime location and the potential to increase rents over the next few years. Additionally, the complex has also proven to be a very stable asset since it was built in 1990, he says.

The property is located in the heart of a medical corridor, next door to the Kaiser Permanente Medical building and near the Irvine Medical Center and the new Kaiser Permanente Hospital. Vaccaro cites the area's demographics, with more than 113,000 people with an average $104,000 annual household income within a three-mile radius.

Vaccaro notes that the medical center is one of a number of assets that Sanderson J Ray has disposed of in recent months to raise capital for new investments and developments, with Vaccaro representing the Irvine-based firm. In April, the company sold a 9,673-sf retail component of the 650,000-sf Center Pointe at La Palma Business Park in La Palma, CA. In February it sold a ground lease for Orange County Fast Food & Convenience Plaza in Santa Ana, CA for $5.5 million.