Meridian Inks 23 KSF Bay Area Lease

December 18, 2024

Medical Office Brokerage News San Francisco More West

A PACE provider will occupy 38 percent of this medical office building.

Exterior shot of Broadway Medical Plaza in Oakland, Calif. — The 60,000-square-foot Broadway Medical Plaza is the redevelopment of an assembly hall. *Image courtesy of Meridian*

Meridian has signed a 23,000-square-foot lease at Broadway Medical Plaza, an approximately 60,000-square-foot recently converted medical office building in Oakland, Calif. Center for Elders’ Independence will occupy the space accounting for 38 percent of the building’s overall leasing footprint.

This will be the sixth Bay Area location for CEI, a Program of All-Inclusive Care for the Elderly provider. Tenant fit-out is already underway, with completion expected next spring.

Colliers worked on behalf of the landlord, while Sabre Real Estate group represented the tenant.

Originally completed in 1966 as an assembly hall, the three-story building is at 3901 Broadway, less than 2 miles from downtown Oakland. Other medical providers in the area include UCSF Benioff Children’s Hospital, Sutter Health and Kaiser Permanente.

Meridian acquired the 1.3-acre property in March 2022 for $13.5 million, according to CommercialEdge information, and redeveloped it into a medical facility. A $35.2 million permanent loan from MidCap Financial financed this endeavor.

Broadway Medical Plaza has now two elevators, a modern HVAC system and new base building systems. The property also includes a redeveloped, 220-stall parking structure.

Colliers Senior Vice President Sid Ewing worked on behalf of Meridian. Sabre Real Estate Group Founders Douglas Hubert and Steve Polito represented the tenant.

Resilient MOB sector still subject to hurdles

Despite numerous challenges and ongoing economic volatility, the medical office market and the broader health-care sector have demonstrated remarkable resilience. This stability is largely driven by the increasing demand for medical properties, fueled by the growing elderly population, particularly Baby Boomers who are now reaching retirement age and require more health-care services.

However, the sector still faces significant hurdles, including workforce shortages and rising labor costs, which affect both profitability and patient experience. Additionally, the slow pace of new construction, due to higher costs of capital and materials, remains a critical issue.