Anchor Health Expands California Footprint

Agoura Hills Medical Plaza

Through a joint venture with an institutional equity partner, Anchor Health Properties has acquired two Class B medical office buildings totaling more than 110,000 square feet in the Los Angeles and Bay Area markets. Capital One provided debt financing for the purchases.

The off-market transactions brought Anchor’s California footprint to nearly 1.5 million square feet, according to a release. The company’s previous acquisitions in the Golden State include NorthBay Medical Office Building and Vista Medical Plaza, two Class A medical office buildings in Fairfield and Vista, respectively.

Medical offices continue to be attractive for investors as occupancy, rental rates and rent collections remained stable and steady even during the COVID-19 pandemic. According to CommercialEdge data, some 400,000 square feet of medical office space traded across the Los Angeles and Bay Area metros in the first quarter of 2022.

Anchor’s most recent California purchases

In the Los Angeles suburb of Agoura Hills, Anchor purchased the 51,000-square-foot Agoura Hills Medical Plaza from a private investor, according to CommercialEdge information. Marcus & Millichap’s James DeBuiser represented the seller.

Situated on 9.3 acres at 29525 Canwood St., the three-story medical office building came online in 1983 and was fully renovated in 2020. Provided services include a mix of primary and specialty care practices, featuring surgery, pediatrics, family medicine, dermatology and orthopedics, among others. The property also has an on-site pharmacy.

The second transaction closed in the San Francisco’s North Bay submarket. Anchor purchased Park Place Medical, a nearly 60,000-square-foot medical office building in Vallejo, Ca. The seller was Hafco, according to CommercialEdge, with the assistance of JLL Capital Markets.

Located at 1761 N Broadway St., Park Place Medical is proximate to the 248-bed Vallejo Medical Center hospital. Built in 1990 and recently renovated, the building houses a wide array of clinical medical services. Kaiser Permanente anchors the facility that was 99 percent leased at the time of sale. The health-care provider has expanded its footprint at the property seven times since its completion.