More medical offices are in the cards for the Irvine Spectrum.
Tustin-based Irvine Medical Plaza LLC, a group of Orange County doctors and investors, just bought 3.1 acres of land for $9.3 million.
The $3 million per acre price is at the high end for the area and matches what some homebuilders pay for lots in Irvine.
On tap for the site: Irvine Heritage Medical Plaza, a 40,800-square-foot medical office building. Plans call for 26 offices in a three-story building.
The doctors behind the project expect to take 10 offices with the rest going up for sale.
Vacancy rates for medical offices are close to 1% in the county, according to brokers.
The development is a few miles from Kaiser Permanente’s $205 million hospital under construction, another draw.
Prices for the Irvine Heritage Medical Plaza units are set to reflect expected demand. Bare offices are set to sell for $620 to $660 per square foot. With the largest units at about 2,100 square feet, most could sell for about $1 million.
Other office space under development in the Spectrum runs about $350 to $450 per square foot.
Doctors “are less focused on” price, said David Kluver, associate vice president for Grubb & Ellis Co. “They are likely to spend as much money on equipment and improvements for the space, anyway,” he said.
The building is due to break ground in the first quarter with completion slated for late 2007. A contractor hasn’t been selected.
The total value of the project should be in the $27 million range, Kluver said.
Kluver, Nick Carey and John Drachman of Grubb & Ellis represented the buyers. The Irvine Company sold the land.
More medical space could be on the way in the area at Irvine Center Drive and Laguna Canyon. The Irvine Co. has nine more lots in the area of similar sizes that are zoned for medical space.
“It’s the first time a pocket of the region has been created by the Irvine Co. for medical uses,” Kluver said.
