Woodbridge Square Medical, a two-story, multi-tenant outpatient medical office building in Irvine running about 36,100 square feet, has been bought by Anchor Health Properties, a Charlottesville, Va.-based healthcare real estate investor, for $27.6 million.
The nearly $764-per-square-foot amount paid for the building is the most paid for an office in Irvine in several years for deals between $20 million and $100 million, according to records from real estate market tracker CoStar Group Inc.
Sales for similarly sized, non-medical buildings in the city typically trade in the $300 to $400 per-square-foot range.
The price isn’t fazing Anchor Health, whose national portfolio includes about 8 million square feet of space under management. The company, which bought Woodbridge Square Medical in a venture with an undisclosed institutional equity investor, says it is on the lookout for more deals in the area.
The firm is “aggressively pursuing new opportunities across Southern California and [seeks] to help health systems and providers make the most of their real estate,” James Schmid, chief investment officer and managing partner with Anchor, said in a statement.
“Throughout 2022, Southern California and the West Coast more broadly will likely be the largest growth area for new investments in the U.S. for Anchor,” he said.
The just-bought office is at 4980 Barranca Parkway, close to Irvine Co.’s Woodbridge Village Center. It sits among a cluster of medical-related facilities on a stretch of Barranca Parkway, and is a short drive from Hoag Hospital Memorial Presbyterian’s growing hospital campus along Sand Canyon Avenue and the city’s Kaiser Permanente medical campus and hospital.
The medical office building was 94% leased at the time of sale to 18 medical, dental and laboratory tenants, including clinical laboratory firm LabCorp, as well as the Fertility Center of Southern California.
Newmark’s Sean Fulp, Mark Schuessler, Ryan Plummer, John Scruggs, Kevin Shannon, Paul Jones and Ken White represented the seller of the office building, Boureston Development of Costa Mesa.
“The Barranca Medical Corridor has performed exceptionally well over the past 10 years, with medical office vacancy consistently hovering around 5%,” said Newmark’s Schuessler. “Our team was able to source an aggressive buyer that understood the submarket’s dynamics, and as a result, we delivered another record-breaking sale.”
The deal is the second pricey one in Orange County for Anchor Health since the end of 2021.
In December, the firm paid a reported $25 million, or roughly $652 per square foot, for Brea Medical Center, a three-story medical office located in the Central Park Village development.