Universal Properties Inc., a Michigan-based owner and manager of medical real estate, has paid $15.3 million for a 35,825-square-foot Newport Beach medical building at 1501 Superior Ave.
The sale price of $427 per square foot ranks it as one of the larger medical office deals in Orange County this year.
The building’s “premium location” in Newport Beach,within walking distance of Hoag Memorial Hospital Presbyterian,drove the price, said Mike Abel of Lee & Associates Commercial Real Estate Services Inc.
Abel and Kevin Quick of Lee & Associates represented the seller, Abel Jarrard & Co., a partnership including Abel’s father. Abel Jarrard owned the building since late 2003.
Brian Garbutt of Lee & Associates represented Universal Properties.
1501 Superior is nearly full, according to Abel.
“There is one vacancy on the ground floor,” he said.
Tenants include a range of doctors, including plastic surgeons and gynecologists.
The building was put up in the late 1980s.
Medical office deals, both for land and buildings, have been brisk this year.
1501 Superior is one of several Orange County medical office sales that have taken place in recent months.
The sector is hot, with vacancy rates hovering around 1%. Space near hospitals generally commands premium rents.
Earlier this year, Warner International Network LLC, a private investment group, paid $7.3 million, or $320 a square foot, for the 33,070-square-foot Warner Village Medical Center near Fountain Valley Regional Hospital Medical Center.
Other recent medical real estate deals include Newport Beach-based Greenlaw Partners LLC’s $12.3 million buy of a 61,640-square-foot Yorba Linda facility, and Fullerton physician Mark Song’s $5 million buy of a 21,447-square-foot building near the Riverside (91) Freeway to create a medical office complex for himself and others.
Hoag recently bought the neighboring Newport Technology Center office. Terms weren’t disclosed. The complex was built a few years back as a research and development campus for technology companies. It’s been largely empty for much of its life.
The hospital plans to use the space for medical and administrative offices, and outpatient medical imaging services.
In terms of construction, Newport Avenue Medical Plaza, a 20,935-square-foot building on Newport Avenue in Tustin, is set to open later this year. ACS Development Group of Irvine is developing and building the plaza.
Pacific Medical Plaza, a four-story, 75,000-square-foot medical office building in Costa Mesa not far from Hoag, is well under way. Irvine-based Brown Associates is developing the $18 million project on the site of a former trailer park.
Enterprise Commercial Development Inc. of Lake Forest recently paid $13 million to The Irvine Company for 4.2 acres zoned for medical office space in the Irvine Spectrum.
The site sold for $3 million an acre, the high end of land sales here.
Enterprise is expected to start work later this year on a three-story, 67,000-square-foot medical condominium complex targeting dentists, psychologists and other types of doctors.
_________________________________________________________
Sun Sells Home Care Unit to AccentCare
Irvine-based nursing home operator Sun Healthcare Group Inc. said last week it’s selling its home healthcare unit for nearly $20 million to Irvine’s AccentCare Inc.
The company said it is selling SunPlus Home Health Services, a provider of home care and pharmacy services in California and Ohio, to AccentCare for $19.3 million.
The sale is expected to close in the fourth quarter.
The deal is designed to let Sun focus on nursing homes and boost profits, Chief Executive Richard Matros said.
Sun also said it’s buying Preferred Hospice of Oklahoma Inc., and plans to buy out management contracts for hospice programs at facilities it owns in Oklahoma, Colorado and New Mexico.
AccentCare is privately held with estimated yearly sales of about $100 million before last week’s acquisition.
The company provides non-medical care to seniors living at home. It operates in California, Arizona, New York and Washington state.
,Vita Reed
