Press Release
FOR IMMEDIATE RELEASE
LOS ANGELES – March 11, 2022 – CBRE announced the successful arrangement of the sale of a 380,000 square-foot medical office portfolio consisting of eight properties located in the San Francisco Bay Area and the San Fernando Valley region in Greater Los Angeles. Tenants include leading regional health systems such as Marin Health, Providence Santa Rosa Memorial Hospital, Kaiser Permanente and CommonSpirit Health. The terms of the deal were not disclosed.
Chris Bodnar, Lee Asher, Jordan Selbiger, Ryan Lindsley, Sabrina Solomiany and Zack Holderman of CBRE’s U.S. Healthcare & Life Sciences Capital Markets team represented Los Angeles-based Pinnacle Capital Management Services (“Pinnacle”) in the disposition of the assets. The portfolio was managed in a joint venture with Harrison Street, one of the leading investment management firms exclusively focused on real assets.
“This was a very unique opportunity for an investor to acquire a medical office portfolio of this size in a state like California where ownership is traditionally very fragmented,” said CBRE’s Bodnar. “These are extremely high-barrier-to-entry markets, and we believe these assets are very well positioned to continue to enjoy the historic resiliency of the medical office sector.”
The California portfolio includes properties in Greenbrae, Santa Rosa, Alameda, Daly City, San Francisco, and Van Nuys. The seller had invested more than $17 million in capital during their ownership, including recent building renovations, tenant improvements and leasing commissions. About half of the portfolio was occupied by health systems and investment-grade tenants.
“Our partnership with Harrison Street provided committed capital and informed, capable and dedicated colleagues to support challenging redevelopment and releasing initiatives across our portfolio,” said Paul Slye, CEO of Pinnacle. “The experienced team at CBRE helped us assess and enter the market to optimum results for our investors, and for our valued tenants”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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