Transaction Marks NGKF Global Healthcare Services’ Fourth Medical Office Sale for the Orange County-Based Investment Firm in 12 Months
La Quinta, Calif.—Newmark Grubb Knight Frank (NGKF) Global Healthcare Services completed the $25 million sale of La Quinta Medical Center in Riverside County, Calif., on behalf of Accretive Realty Investment, LLC (Accretive Realty). The buyer was a large real estate investment trust that specializes in the healthcare sector.
The sale price equates to a capitalization rate of approximately six percent, underscoring the asset’s high quality and excellent location in the fastest-growing portion of the Coachella Valley. The property, located at 47647 Caleo Bay Drive at the corner of Washington Street and a mile south of Highway 111, was 98 percent occupied when the transaction closed.
Garth Hogan and Todd Perman, CCIM, both executive managing directors with NGKF Global Healthcare Services, cooperatively represented Accretive Realty in the sale.
The deal marks NGKF Global Healthcare Services’ fourth disposition for Accretive Realty in Southern California over the past year, following the sales of three medical office buildings in Orange County that collectively garnered $41.4 million in separate sales to an unnamed a private equity fund beginning in October 2013.
“This is an unbeatable location with great visibility from Washington Street, with more than 200,000 Valley residents living in the immediate market area and 35,000 cars passing the building every day,” Mr. Hogan said. “Accretive Realty had a first-rate property to sell in an up-and-coming, high-end market, and the buyer decided that combination merited the $600 per foot price for the asset.”
Accretive Realty acquired the two-story La Quinta Medical Center as a value-add opportunity in 2007, when it was 25 percent leased. Following strong asset management and leasing programs deployed by Accretive Realty, the property was nearly 100-percent occupied at the time of sale, with a tenant roster that included three clinics affiliated with Desert Regional Medical Center: the Comprehensive Cancer Center, Institute of Clinical Orthopedics and Neurosciences, and La Quinta Imaging.
Accretive Realty’s three other recent medical office sales in the region followed repositioning programs that substantially boosted the value of each property. Those properties, which closed in the fourth quarter of 2013 at mid-to-low five cap rates, included Oceanview Medical Center at 675 Camino de los Mares in San Clemente, Calif, for $15.7 million; Pacific Park Medical Dental, a 21,438-square-foot building at 24541 Pacific Park Drive in Aliso Viejo, Calif., for $10.4 million; and Aliso Viejo Medical Center, a 27,192-square-foot building at 24502 Pacific Park Drive in Aliso Viejo, for $15.3 million.
About Accretive Realty Advisors, Inc.
Accretive Realty Advisors, Inc., the operating subsidiary of Accretive Realty Investments, LLC, is headquartered in Newport Beach, CA. The firm exclusively targets medical office building investment opportunities in California on behalf of its investors that satisfy a predefined set of characteristics, specifically value-add opportunities within “in-fill” markets where major economic drivers exist, combined together with significant barriers to entry, which drive compelling yields and strong exit strategies. For further infornation, visit www.accretiverealty.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visitwww.bgcpartners.com.
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