Pan-Med Pays $45M for San Francisco MOB
2 min read
CBRE secured acquisition financing from Silicon Valley Bank.
Pan-Med Enterprises has acquired the fee simple interest of the Pacific Professional Building, a 132,000-square-foot medical office building in San Francisco. The $44.5 million deal involved the purchase of the underlying land out of a ground lease. Sutter Health was the seller, according to CommercialEdge data.
CBRE represented the buyer and secured the acquisition financing that also repaid the existing leasehold loan. Silicon Valley Bank originated the $44.5 million, 10-year, fixed-rate, non-recourse note, CommercialEdge information shows.
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Pacific Professional Building came online in 1987 as one of the four components of California Pacific Medical Center’s Pacific Heights campus. The five-story medical office property with first-floor retail space underwent renovations in 2021, currently holding a Class A Energy Star rating. The property includes an outpatient radiology lab, testing labs, pharmacy and a health resource center. The facility is 97 percent leased to various tenants such as Pacific Gynecology Surgical Group, San Francisco Oncology Associates, Comprehensive Stroke Care Center and other privately operated medical practices.
Located at 2100 Webster St., the property is just 1.5 miles from downtown San Francisco. Several hospitals are in the immediate area, while CPMC Van Ness Campus is less than one mile away.
Bay Area medical office transactions
The CBRE team that represented Pan-Med included Mike Taquino, Kyle Kovac, Alec Haley and Giancarlo Sangiacomo, while Mike Walker and Brad Zampa secured the loan. Earlier this year, Walker and Zampa also provided Four Corners Properties with $75 million in financing for the purchase and redevelopment of a 7-acre office property into a new life science campus in Belmont, Calif.
According to CommercialEdge data, more than 1.8 million square feet of medical office space has changed hands across the Bay Area since the beginning of the year. In one of the most prominent transactions, Harrison Street sold a portfolio of eight medical offices, totaling 380,000 rentable square feet, for $215 million. Six properties were located in Santa Rosa, Daly City, Alameda and Greenbrae.