CT Realty Investors has added another notable name to the lineup of companies preparing to occupy space at the 25.6-acre healthcare campus it’s developing in Aliso Viejo.
Kaiser Permanente, Orange County’s largest health maintenance organization with nearly 530,000 members, recently committed to building a 36,000 square-foot medical office building at CT Realty’s Aliso Healthcare Campus.
The mixed-use healthcare campus—on Liberty Road, close to Aliso Viejo Town Center—is expected to be the largest medical related development in Orange County to be built next year.
The project’s budget is about $250 million, according to James “Watty” Watson, Managing Partner of Newport Beach-based CT Realty.
Kaiser Permanente’s portion of the development is likely to be valued at $25 million or more, based on recent sales of other recently built medical office buildings in the area.
New medical office buildings in South Orange County have traded hands for more than $650 per square foot this year, which is more than double the going rate for traditional office sales in the region.
Development of Aliso Healthcare Campus now includes some early-stage infrastructure and ground work, which is being handled by Brea-based KPRS Construction Services.
Construction of a bulk of the development will begin in the first quarter of next year, with the first batch of buildings opening by the end of 2017, according to CT Realty Managing Partner Carter Ewing.
Former USPS Site
CT Realty—which moved its headquarters from Aliso Viejo to Newport Beach this year—bought the land for the healthcare project in March in a reported $33.6 million deal.
The site was sold by the U.S. Postal Service, which had previously considered the land for a large mail-processing facility. It’s one of the last big parcels of developable commercial land in Aliso Viejo.
CT Realty has been selling parcels at the campus to individual healthcare-related users since the March deal; other companies committed to the project include Signature Healthcare Services in Corona, Belmont Village Senior Living in Houston, and Roseville-based-based USA Properties Fund.
Signature Healthcare will operate a 76,200-square foot, 120-bed behavioral health facility that will be built on a nearly 4-acre parcel at the project, which is owned by G&L Realty in Beverly Hills.
Belmont Village owns another 4-acre parcel at the project, which will hold a 126,000-square-foot, 178-bed managed-care facility.
USA Properties will build a 200-unit senior apartment facility on its portion of the development. It also has a similar project called Vintage Aliso under construction down the street.
The three prior individual land deals were valued at more than $25 million combined, according to CoStar Group Inc. records.
Terms of Kaiser Permanente’s deal for the land that will hold its two-story medical office building have not been disclosed.
CT Realty is still marketing for sale the remaining five acres at the project that are expected to hold four smaller medical office buildings. Those buildings are likely to be sold to individual users.
CBRE Group Inc.’s Larry Schuler, Casey Immel, Keith Black and Gregg Haly have the listing for the site.
Industrial Growth
The healthcare development comes as CT Realty has been ramping up its out-of-town deal making for its largest source of business these days: big-box industrial developments.
It is working with Seal Beach-based Xebec Realty Partners on the 530-acre Southport Logistics Park, an estimated $500 million industrial project about 12 miles south of downtown Dallas that’s one of the largest industrial developments currently on the books in the U.S.
CT Realty and Xebec bought the site in 2013 on undisclosed terms under a venture they control and that now operates as Port Logistics Realty.
Other investors in Port Logistics Realty include Diamond Realty Investments Inc., a subsidiary of Mitsubishi Corp. in Japan, and several wealthy investors in Orange County.
Similar projects are on the books for other locations in other big industrial markets, according to CT Realty’s Ewing.
“Our focus is still industrial and office,” he said.
The company has deals in the works for an industrial project at a Northern California location of more than 300 acres, as well as a nearly 300-acre site near Atlanta, and a 100-acre site near Chicago, according to Ewing.
Specific details of those projects haven’t been disclosed.
Along with its move to Newport Beach—to a building that previously served as the headquarters of Koll Co., where Watson was once an executive—CT Realty recently has made some other operational changes.
Watson, Ewing and Managing Partner Dominic Petrucci recently bought out the ownership stakes of CT Realty’s other investors, and now own the company outright, the company said.
