Douglas Emmett, Welltower Shake on $260M MOB Deal in LA

April 15, 2026

Medical Office Investment Los Angeles News More West

With this acquisition, the buyer controls one-third of the submarket’s Class A medical office inventory.

A joint venture managed by Douglas Emmett has acquired the Bedford Collection, a 246,000-square-foot medical office portfolio in Beverly Hills, Calif., for $260 million. Welltower previously owned the two assets, according to Yardi Matrix.

Douglas Emmett contributed 13 percent to the equity of the newly formed joint venture, which clocked in at $150 million. A $130 million, five-year, interest-only note financed this deal.

Consisting of five buildings that debuted between 1946 and 1989, the portfolio occupies nearly an entire block at 400 N. Bedford Drive, inside Beverly Hills’ downtown area. Los Angeles’ city center is about 12 miles east, while the Cedars-Sinai Medical Center and UCLA Ronald Reagan Medical Center are less than 2 miles away.

Through the acquisition of this collection, which was 95 percent leased to a roster of 120 tenants at closing, Douglas Emmett reached a footprint of 2.4 million square feet of medical office space in Beverly Hills, accounting for 33 percent of the submarket’s Class A inventory. To put this into perspective, the area is among the dominant Los Angeles medical office submarkets, making up nearly 10 percent of all existing space across the metro, according to a CBRE report.

What’s more, Douglas Emmett’s latest portfolio deal eclipses the total Los Angeles medical office investment volume recorded during 2025’s fourth quarter, which clocked in at $103 million, the same report shows.

Welltower’s pivot away from medical office

The properties previously traded in 2015 as part of a larger $449 million, 437,895-square-foot deal, including other assets in La Jolla, Calif., and Tustin, Calif. Back then, Welltower, formerly Health Care REIT, partnered with the Canadian Pension Plan Investment Board for the purchase.

Through this latest divestment, Welltower continues its plan to pivot away from medical office toward senior housing. Last year, it agreed to sell 18 million square feet of outpatient medical office assets to a joint venture between Remedy and Kayne Anderson. The $7.2 billion acquisition kicked off with an initial $2 billion portfolio tranche of 123 properties, with the remaining 173 assets to be sold by the middle of this year.