With the Santa Monica/West Los Angeles medical office marketvacancy rate at 4% and with rents rising dramatically, Kennedysays, "This was an opportunity we couldn't pass up." NationalHealthcare, along with its partners Fidelity Real Estate of Bostonand Income Property Specialists of Boulder, acquired the 2825 SantaMonica property from Amcyte Inc., a biomedical firm with itsheadquarters in the building.

John McCulloch, president of National Healthcare Properties,comments that the deal offers "excellent upside in value andincome" for NHP and its investors. "Our immediate plan is to finishleasing the vacant space and concurrently invest capital to upgradethe property," McCulloch says.

The 2825 Santa Monica Blvd. property is a three-story buildingthat includes subterranean parking at the ratio of three vehiclesper 1,000 sf of building space. The property is blocks from StJohn's Medical Center, UCLA Medical Center and the VeteransAdministration Medical Center.