Oceanview Medical Center, a medical office building near Saddleback Memorial Medical Center’s San Clemente campus, has been sold on undisclosed terms to Irvine-based investor Accretive Realty Advisors Inc.
The five-story building has 30,915 square feet of space. It had been listed for sale at $12 million, or $388 per square foot.
The property was renovated in 2006 and currently is 86% leased. It last traded hands in 2007 for just under $12.4 million, or about $400 per square foot, according to brokerage data.
The 2007 sale marked a record per-square-foot price for a South County office larger than 20,000 square feet, according to CoStar Group Inc. data.
The building’s latest listing stirred strong interest due to its proximity to Saddleback, said Evan Kovac, a managing director in brokerage Newmark Grubb Knight Frank’s global healthcare services division who represented the unidentified sellers with colleagues Garth Hogan, Chris Stai and Kyle Kovac.
“It’s a class A building and has really strong tenants,” said Kovac, who works in the brokerage’s Newport Beach office. “It’s campus-adjacent, it’s across the street from the hospital, and Saddleback’s got a really strong credit rating.”
The hospital is one of three in Orange County, and one of three in L.A. County, owned and operated by Fountain Valley-based MemorialCare Health System, which leases 20% of the Oceanview Medical Center. MemorialCare has an investment-grade AA credit rating from Standard & Poor’s.
MemorialCare appears likely to expand its space in the building at some point, Kovac said.
Newmark’s Hogan and John Scruggs will handle Oceanview’s leasing as exclusive agents to Accretive, the developer of Fullerton’s Providence Center, a combination of medical space and shops built next to St. Jude Medical Center.
Accretive represented itself in the sale. Jeff Tomei of Newport Beach-based Knightsbridge Realty Capital, a mortgage-banking firm, handled the financing for the purchase on behalf of Accretive. Accretive’s “incredibly excited about getting the best building” in the market, said Thomas LeBeau, its chief executive.
Its portfolio includes facilities operated by Tenet Healthcare Inc., Kaiser Permanente, the University of California Regents and now MemorialCare, LeBeau said.
