September 4, 2019
Los Angeles-based Stockdale Capital Partners divested the 147,078-square-foot 3rd Street Medical Center, located at 2100 West 3rd St. in the DTLA area, for $85 million. The property was built in 1991 and housed the House Ear Institute. It was expanded in 2007 and features modern, sweeping curvilinear construction, high ceilings with 14- to 15-foot slab-to-slab floor heights, balconies, and sweeping views.
The property was originally purchased as a strategic, value-add opportunity in 2016 with only 68% occupancy. Since then, Stockdale stabilized the occupancy to more than 90%, and improved the credit healthcare tenant profile of the building. The tenant roster includes UCLA Health, Children’s Hospital Los Angeles and Providence Health, AltaMed and U.S. Renal Care.
Stockdale’s Dan Michaels says, “We saw strong intrinsic value in the location, where zoning restrictions and lack of medical office supply allowed us to reposition the asset without threat of competition.”
CBRE’s Chris Bodnar, Lee Asher, Ryan Lindsley, Sabrina Solomiany, Angie Weber and Dana Nialis advised Stockdale.
Connect Healthcare is coming up October 2 and 3, 2019 at The Resort at Pelican Hill in Newport Coast. More information about the event and registration details can be found here.
For comments, questions or concerns, please contact Dennis Kaiser