In a $74.4 million deal, LaSalle Investment Management has acquired a 49,721-square-foot medical office building in Beverly Hills, Calif. Newmark arranged the transaction on behalf of the seller, UBS Realty Investors. The company bought the five-story asset in 2015 for $75.1 million, according to CommercialEdge data.
Located at 9033 Wilshire Blvd., the Class A medical office building dubbed Archway Medical Plaza came online in 1958 and was extensively renovated in 2011, CommercialEdge data shows.
The property is anchored by USC’s Keck Medical Center and includes a surgery center and a full-service pharmacy. Its diverse mix of medical tenants provide specialty services such as dermatology, internal medicine, neurosurgery, orthopedic surgery, urology and voice therapy, among others. Designed by SIM & Associates, the facility also features first-floor retail, first-level parking and a rooftop deck.
The property is less than 1 mile from downtown Beverly Hills in Los Angeles’ premier medical market, close to Cedars-Sinai Hospital. Kaiser Permanente Medical Center and Olympia Medical Center are both within a 3-mile radius.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan and Ken White, along with Senior Managing Director Laura Stumm represented the seller in the deal. Senior Managing Director Steven Salas also participated. Newmark was also instrumental in the $196 million sale of a 388,126-square-foot office tower located just up the road of Archway Medical Plaza.
High prices for Los Angeles MOBs
The Beverly Hills medical office asset changed hands for $1,496 per square foot, which is slightly below the price the property traded for back in 2015. However, the amount is well above the national average. According to a recent CBRE report, U.S. medical office assets sold for an average of $300 per square foot in the fourth quarter of 2020.
The same report shows that 54 medical office sales closed in the Western region during the same period, at an average price per square foot of $413.