Another medical office building has changed hands.
Warner International Network LLC, a private investment group, has paid $7.3 million for Warner Village Medical in Fountain Valley.
Warner Village Medical has about 33,070 square feet of space near Fountain Valley Regional Hospital Medical Center.
Kevin McNeil and Matthew Kipp, brokers with Marcus & Millichap Real Estate Investment Brokerage Co.’s Newport Beach office, represented both parties in the deal.
Warner International plans to “maintain and operate” Warner Village Medical, McNeil said. Doctors make up most of the tenants at the 29-year-old, two-story building, which is full.
RJM Holdings, a real estate investment trust, had owned Warner Village Medical since 2002.
At the time, it paid $4 million to buy it from another investment group, Warner Village Venture LLC.
The market for medical space is tight, Marcus & Millichap’s McNeil said, with vacancy rates of about 1%.
When a building next to a hospital comes up for sale, it’s snatched up right away, he said.
Warner Village Medical sold with a capitalization rate,the expected return from rents and fees,of 6%, said John Pryzbyla, Marcus & Millichap’s regional manager.
Warner Village Medical’s sale is the latest of several medical office deals in the past year.
Earlier this year, Boureston Development Inc. paid $3.7 million to Christian Credit Union for a two-story, 18,468-square-foot building on Lambert Road in Brea.
Boureston, an Irvine real estate developer that specializes in medical office buildings, is converting the facility, a former bank branch, into one for medical use.
A partnership between Santa Ana Medical Office Building and George Okida paid $7.4 million to Olive Crest Treatment Centers for a 55,187-square-foot office building on East Fourth Street in Santa Ana.
The owners plan to renovate the building and lease it to St. Joseph Hospital.
Other hospitals have gotten into medical office buying.
In February, Newport Healthcare Center LLC, an arm of Newport Beach’s Hoag Memorial Hospital Presbyterian, bought the Newport Technology Center for an undisclosed price from Newport Superior Group LLC.
Medical offices are among Hoag’s planned uses for the complex, which is made up of four office buildings and a parking structure.
One of the buildings will be razed for additional parking.
