By Evelyn Jozsa
Meridian has purchased The Laguna, a 57,057-square-foot medical office building in Laguna Hills, Calif., expanding the firm’s portfolio in Southern California. The company acquired Cotton Medical Center in Pasadena last year, and recently appointed Cypress West Realty Management as manager of the medical complex. Colliers International represented the seller in the transaction, while Meridian was self-represented.
The five-story medical office building is situated at 24022 Calle de la Plata on a .75-acre parcel. It is adjacent to Saddleback Memorial Hospital, a 325-bed hospital. Across the street from The Laguna is the former Laguna Hills Mall, which is being redeveloped into an indoor-outdoor retail center and urban village, named Five Lagunas. The property is also close to the Laguna Woods Village, one of the largest 55-plus communities in Southern California.
“The South Orange County submarket has exceptional demographics. Approximately 50 percent of the population within a one-mile radius of the property is 65 or older, which accounts for the highest per capital healthcare spending. We’re looking forward to providing the community with a comfortable and inviting medical space that they can get to quickly and easily,” said John Pollock, CEO of Meridian, in prepared remarks.
The buyer plans to invest more than $24 million into the property by the time it is fully leased. At the time of the sale, The Laguna was 74 percent occupied. Built in 1983, the asset will undergo a renovation to modernize the building and upgrade it to class A standards.
Renovations will include upgrades to common areas like the lobby, hallways and restrooms and tobuilding systems, including the HVAC and lighting, to improve efficiency, according to R.J. Sommerdyke, senior acquisition manager of Meridian. Fire sprinklers will also be added throughout the building and ADA upgrades will be made.
The renovations should be completed within the next year.
Image courtesy of Meridian