Harrison Street JV Lands $51M for Orange County MOB

Harrison Street Asset Management, in a newly formed joint venture with Archer Property Partners, has refinanced Pacifica Medical Plaza, a 114,209-square-foot medical office building in Irvine, Calif. JLL Capital Markets arranged the interest-only financing through Thorofare Capital.

The ownership took out a $51 million loan, according to Yardi Matrix information. Previous financing included a $51.3 million note originated by H.I.G. Capital in June 2021.

Harrison acquired the asset in September 2020 in a joint venture with Meridian, the same data provider shows. BlackRock sold the asset for $43 million. Two years later, the owners converted the property from office into medical office. Renovations included the addition of a two-level, 575-space parking garage, EV charging stations and new common areas.

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The four-story facility at 114 Pacifica was 64 percent leased at the time of closing, tenants including Children’s Hospital of Orange County, Orthopaedic Specialty Institute and Hoag.

The property is close to Interstate 5, roughly 2 miles from Hoag Hospital and Kaiser Permanente Orange County-Irvine Medical Center. Downtown Irvine is 5 miles away, while Los Angeles International Airport is 47 miles northwest. Other medical providers in the area include Providence Mission Hospital Mission Viejo and Southern California Family Dentistry.

JLL Senior Managing Director John Chun and Associate Kyle White led the team that arranged the deal.

MOB sector holds steady

Looking ahead, industry experts expect the medical office sector to hold its momentum in 2026, supported by ongoing growth in outpatient facilities and ambulatory surgery centers. The asset class continues to offer revenue opportunities that are less common in other property types, and private equity partnerships with provider groups and health systems have reinforced investor confidence.

Interest in medical office properties remains strong, even as supply stays tight. Occupancy levels remain exceptionally high across the sector, in line with broader medical office building trends.