Marcus & Millichap is pleased to offer for sale this attractive two-story, elevator-served medical office building located at 1902 Royalty Drive in Pomona, California. Royalty Medical Plaza was built in 1981. It is a combination of steel and wood construction with an open interior courtyard that is well landscaped. The facade is attractive glass, concrete with brick accents. Comprised of 31,135 square feet, the subject is situated on two acres of land that provide over 4.5/1000 parking. The building is currently 67 percent occupied and the asking rents in the building are $22/SF. Asking rents in the immediate area are $22.80 to $29.85 per foot FSG.
One key factor in owning a medical building is proximity to a major hospital. Royalty Medical Plaza is an AAA location located just blocks from Pomona Valley Hospital, one of the top hospitals in Los Angeles County. It is a fully accredited nonprofit 437-bed acute care hospital that has been recognized as a top hospital by a host of healthcare survey companies, including US News Healthcare Survey, Healthgrades and Thomson Reuters.
In summary, the subject is the least performing asset in the immediate market. There is an opportunity for an astute operator to turn the building around through improved management and leasing. This is an extremely rare opportunity to own superior location well-constructed MOB, at a price per square foot well below comparables and significantly below replacement cost. Currently, there are 1,000 new individuals that qualify for Medicare every day due to the aging baby boom generation. This, combined with the effects of Obama Care, will be driving demand for medical services for years to come and well-located buildings such as Royalty Medical Plaza will most likely see increased demand.
Investment Highlights
- Close Proximity to the 437-bed Pomona Valley Hospital
- Recently selected for new Los Angeles County Trauma Center
- Two Acres of Land on the 10 Freeway Providing Over 4.5/1000 Parking
- Significant Upside Through Leasing and Management
- 8.06% CAP rate at 90% Occupancy
- Asking Rent in subject $22/SF; Market Rents $22.80 to $29.85 FSG
- Significantly Below Comparable Sales and Replacement Cost 14
Property Description
The Offering
- Property: Royalty Drive Medical Plaza
- Property Address: 1902 Royalty Drive Pomona, CA 91767
- Property Type: Medical Office Building
- Assessor’s Parcel Number: 8362-007-048
Site Description
- Parcel Size: 1.95 AC
- Type of Ownership: Fee Simple
- Rentable Square Feet: 31,135
- Floor Area Ratio (FAR): 0.38
- Zoning: AP-S, Pomona
- Parking Ratio: 4.50/1,000 SF
- Cross Street: Ervilla Street
- Highway Access: Interstate 10
Construction
- Year Built: 1981
- Construction Type: Masonry
- Number of Floors: 2
- Number of Suites: 20
Mechanical
- Elevator: 2
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0090373 Marcus & Millichap. All rights reserved.
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
