Newmark announces the sale for $ 81.5 million of a medical office building in Beverly Hills, California
October 7, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces that it has arranged the sale for $ 81.5 million of a three-story medical office building located at 150 North Robertson in Beverly Hills, California. Also known as the Beverly Hills Medical Plaza, the property comprises 67,510 square feet of Class A space and is leased to a diverse roster of esteemed physicians as well as other top medical tenants.
Newmark Co-Head of US Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan, Ken White and Senior Managing Director Laura Stumm represented the seller, a private family office. Newmark’s senior managing director, Steven Salas, was also involved in the sale and will lease the asset on behalf of the buyer, a partnership between Morgan Stanley and Meridian Property Company. Testimony to the rare opportunity to acquire a premier medical practice in Beverly Hills, the seller has owned the property since developing it in 1989.
“Private equity remains highly motivated to acquire a top notch, well-located physician practice product after the pandemic due to the vital nature of the patient-physician relationship,” said Hannan. “The physician practice industry offers the resilient and secure profile desired by many investors in today’s capital markets landscape. ”
The Gensler-designed asset has a prominent presence along Robertson Boulevard with its nearly one-acre site. The property features an extremely rare and highly desirable porte-cochere, the only one of its kind among Beverly Hills medical buildings, which allows immediate access to the building for patients and sits above three levels of underground parking. The property, which is 88% leased, includes an on-site surgery center as well as a pharmacy, and offers the buyer the option of increasing rents.
Salas added, “With its unparalleled entry points, be it the porte-cochere or the grandiose three-story atrium lobby, along with its proximity to Cedars-Sinai, 150 North Robertson offers one of best environments for tenants and patients in Beverly Hills. Morgan Stanley and Meridian have acquired an irreplaceable gem. ”
150 North Robertson is centrally located, minutes from Cedars-Sinai Medical Center and UCLA Ronald Reagan Medical Center, providing tenants with synergies with some of the nation’s most respected hospital systems. Over 50% of the tenant list is affiliated with Cedars-Sinai, benefiting from the property’s close proximity to its campus. The property also offers accessibility to an array of premier retail, shopping and dining destinations along Robertson Boulevard.
The healthcare industry remains strong in the current economic environment, outperforming most other types of commercial properties during the pandemic, according to Newmark Research. The direct-to-office vacancy in Beverly Hills has been in single digits since 2002, and has consistently hit some of the highest rental rates in the country.
Newmark Group, Inc. (Nasdaq: NMRK), along with its subsidiaries (“Newmark”), is a global leader in commercial real estate, seamlessly fueling every phase of the property lifecycle. Newmark’s full suite of services and products are uniquely tailored to suit every client, from owners to occupants, investors to founders, and startups to blue chip businesses. Combining the platform’s global reach with market intelligence in established and emerging real estate markets, Newmark provides superior service to clients across the industry. Newmark generated revenues of over $ 2.2 billion for the twelve months ending June 30, 2021. The offices owned by the Newmark company, as well as its business partners, operate from more than 160 offices with approximately 6,200 professionals worldwide. To learn more, visit nmrk.com or follow @newbrand.
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