Transactions: TDA Investment Group buys 51,441 s.f. on-campus MOB in San Diego for $11.4 million

SAN DIEGO – TDA Investment Group of San Mateo, Calif., in recent months acquired an MOB located within a complex of three medical buildings across the street from Alvarado Hospital Medical Center in San Diego.

The firm closed on Alvarado Medical Plaza III, a three-story, 51,441 square foot MOB, for about $11.4 million, according to RCA. The seller of the property at 6719 Alvarado Road was AMP III LLC, an LLC headed by Dr. Jeffrey L. Rush, long-time chairman of the board of San Diego-based Pacific Medical Buildings.

PMB was not an owner of the MOB, however the company provided management services for the facility.

The building was constructed on 2.5 acres in 1991; it was 75 percent leased at the time of the closing.

The buyer, TDA, was represented by Evan Kovac of the Newport Beach office of Newmark Grubb Knight Frank. TDA is a pension fund advisor that acquires assets on behalf of different investment vehicles. It now owns five MOBs in California.

“Alvarado Medical Plaza III presented an opportunity to acquire a best-in-class medical office building located on a robust hospital campus within the dense boundaries of San Diego,” Mr. Kovac said in a statement. “We believe this property is poised to continue benefitting substantially from its proximity to the hospital, favorable demographics and projections of healthcare expenditures growth within this sub-market.”

Led by Greg Nelson, PMB Brokers, an affiliate of Pacific Medical Buildings, acted on behalf of the seller.

Located a few blocks from San Diego State University, Alvarado Medical Plaza III is anchored by an Alvarado Hospital-affiliated outpatient surgery center, which occupies most of the first floor. The hospital is part of Ontario, Calif.-based Prime Healthcare Services, which owns and/or operates 23 acute care hospitals in California, Kansas, Nevada, Pennsylvania and Texas.