By Jeff Hamann
A joint venture between Harrison Street Real Estate Capital and Pinnacle Capital Management Services has acquired the San Francisco-area Physicians Medical Center for $30 million from Swift Real Estate Partners. The buyer financed the acquisition with a $25 million non-recourse, floating-rate loan from Siemens Financial Services, according to public records. Different HFF teams represented both parties in this transaction.
The asset, a 70,705-square-foot medical office building, last changed hands in late 2014 when Doctors Development Corp. sold it to Swift, according to Yardi Matrix data.
Located at 901 Campus Drive in Daly City, the three-story building is half a mile west of Interstate 280 and 10 miles south of downtown San Francisco. Originally constructed in 1990, the structure was renovated by the previous owner in 2015. The asset is 92 percent leased to multiple firms, including anchor tenants Palo Alto Medical Foundation and Campus Surgery Center.
“Physicians Medical Center joins our growing portfolio of managed and joint venture investments with Harrison Street Real Estate Capital,” said Pinnacle Capital CEO Paul Slye, in a prepared statement. “The fundamental strengths of this location and property will be enhanced as we continue to improve the property and strengthen its institutional grade tenant base.”
Earlier this year, Harrison Street acquired a four-building medical portfolio in a joint venture with American Academic Health System.
Image courtesy of Yardi Matrix