For Immediate Release
Cushman & Wakefield’s Healthcare Capital Markets Team Advises Unique, Strategic Sale of 160,000 SF Pomerado Outpatient Pavilion
Undisclosed REIT acquires facility in landmark transaction
SAN DIEGO, Calif., June 2, 2021 – Cushman & Wakefield announced the firm has brokered the sale of the Pomerado Outpatient Pavilion in Poway (San Diego), California. The 160,000-square-foot medical office building is mostly occupied by Palomar Health and its associated medical groups and is adjacent to its Palomar Medical Center Poway hospital. Although the purchase price and terms of the transaction are confidential, the total transaction value was in excess of $100 million.
The Pomerado Outpatient Pavilion was acquired by a publicly-traded Real Estate Investment Trust (REIT). Travis Ives with Cushman & Wakefield’s Healthcare Capital Markets Team represented Palomar Health in the transaction helping them exercise and assign the purchase option in the ground lease, evaluate potential replacement buyers, select a replacement buyer, and negotiate the new master lease for the building.
“This transaction marks the culmination of a long-term strategy we devised with Diane Hansen, Palomar Health’s Chief Executive Officer, all the way back in 2016,” said Travis Ives, Managing Director. “Faced with a long-term lease at above market rents, Diane was seeking a solution to reduce rental obligation and gain access to much needed capital for tenant improvements. The new master lease is projected to save the healthcare system in excess of $2 million annually in addition to providing immediate access to capital for tenant improvements to expand services in the building.”
“We are very pleased at the successful outcome of this transaction and appreciative of the strategic guidance and advice received from Travis and the Cushman & Wakefield team throughout the process,” said Diane Hansen, Palomar Health’s Chief Executive Officer. “The savings achieved and access to fresh capital will support our commitment to delivering the best care to the communities we serve while being good stewards of the district’s assets. We’re looking forward to expanding our services at this location and enjoying a new partnership with an experienced owner of medical office buildings.”
In addition to Travis Ives based in San Diego, Cushman & Wakefield’s Healthcare Capital Markets Team includes Gino Lollio and Scott Neidergang based in Chicago. The trio have closed in excess of $1.6 billion in transactions with a combined 45 years of experience in healthcare real estate. Also assisting on this transaction was San Diego-based Joe Zurek, Director with the firm’s Healthcare Advisory Practice.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About Palomar Health
Established in 1948, the award-winning team at Palomar Health provides the most comprehensive health care in North San Diego County through its two medical centers and more than 900 affiliated medical providers serving more than half a million people. Palomar Health is San Diego County’s only member of the Mayo Clinic Care Network and is nationally recognized as operating one of America’s 250 Best Hospitals; a Best 100 Hospital for joint replacement and orthopedic surgery; a Best Hospital for stroke care, heart care and bariatric surgery; a Diabetes and Stroke Center of Excellence; and a Blue Distinction Center for spine surgery, cardiac care and maternity. Through its network of providers, Palomar Health offers medical services in virtually all fields of medicine including primary care, cardiovascular care, emergency services, trauma, cancer, orthopedics, women’s health, behavioral health, rehabilitation, robotic surgery and bariatric surgery at offices strategically located throughout the North San Diego County region. For more information, please visit www.PalomarHealth.org. You can also follow us on Twitter, Facebook and Instagram.
Media Contact:
Joshua Deale
Cushman & Wakefield
Communications Manager, West Region
+1 415 677 0423
joshua.deale@cushwake.com
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