SANTA ROSA, CA—A 34,047-square-foot, medical office building at 121 Sotoyome has been sold by Sotoyome Medical Building LLC. Holliday Fenoglio Fowler L.P. (HFF) sold the property on behalf of the seller. American Realty Capital Healthcare Trust II Inc. purchased the asset for an undisclosed amount. The property was carved out as part of a larger healthcare portfolio located throughout Sonoma and Mendocino Counties.
The facility is directly adjacent to Santa Rosa Memorial Hospital, a 278-bed, acute care facility and level II trauma center. The property is fully leased to St. Joseph Heritage Healthcare and functions as an outpatient multi-specialty and radiology service center with built-out rooms for MRI, PET, CT and linear accelerators. Originally built in 1955, the property has been consistently updated throughout the years with more than $5 million in improvements made since 2005.
The HFF investment sales team was led by managing director, Evan Kovac, who is a part of HFF’s national healthcare practice. Kovac tells GlobeSt.com: “St. Joseph’s outpatient center generated tremendous investment demand from a broad spectrum of capital providers including healthcare REITs, institutional funds and high net worth private investors. The facility is highly specialized and provides critical services such as radiology, mammography and imaging. In fact, the property houses the only PET CT in the North Bay Area. The immediate proximity to Santa Rosa Memorial Hospital, which is part of the prestigious St. Joseph Health System, was viewed extremely favorably by the investment community. Additionally, the North Bay Area location and in particular, the affluent and desirable wine country region were viewed as major intrinsic benefits. As most of us know, the medical office marketplace as a whole is incredibly robust with record level pricing.”
American Realty Capital Healthcare Trust II Inc. is a publicly registered, non-traded real estate investment trust focusing primarily on healthcare-related assets including medical office buildings, seniors housing and other healthcare-related facilities.
HFF, together with its affiliate HFFS, offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. As previously reported, HFF also facilitated the sale of Theatre Square last month.