UCLA Health Acquires MOB Portfolio
CBRE arranged the transaction on behalf of the seller.
Healthcare Realty has sold the West Valley Medical Portfolio, comprising 162,554 square feet across three medical office buildings in West Hills, Calif. University of California acquired the assets on behalf of UCLA Health, according to public records.
CBRE arranged the transaction on behalf of the seller. At the time of sale, the portfolio was 94.1 percent leased, with tenants including UCLA Health, Optum, City of Hope, LabCorp and Providence Health & Services.
The facilities are located at 7301, 7325 and 7345 Medical Center Drive, within walking distance of downtown West Hills. Downtown Los Angeles is within 29 miles. Other medical providers in the area include West Hills Smiles and Kaiser Permanente Woodland Hills Medical Center.
READ ALSO: Challenges Create Opportunities, Says MOB Investor
The properties are also adjacent to UCLA West Valley Medical Center, which UCLA Health acquired in March of 2024. That hospital is about 21 miles northwest of UCLA’s main campus in Westwood and includes 260 beds with seven operating rooms.
The 62,369-square-foot facility at 7345 Medical Center Drive, completed in 1985, rises six stories and went through cosmetic renovations in 2010. Dubbed Oak Hills Medical Plaza, the mid-rise has first-floor retail space, with floorplates averaging 10,536 square feet.
The building at 7325 Medical Center Drive, known as Park Hill Medical Plaza spans 43,000 square feet and was completed in 1991. The facility has two passenger elevators and more than 180 parking spaces.
CBRE Vice Chair Chris Bodnar, Executive Vice President Brannan Knott, Senior Vice President Zack Holderman, Senior Director Trent Jemmett, Vice Presidents Cole Reethof and Jesse Greshin, along with First Vice Presidents Angie Weber and Dana Nialis arranged the sale.
MOB sector continues to grow
The medical office real estate market is expanding, with a Savills report predicting a 26 percent increase in outpatient demand over the next 10 years. This rise is largely attributed to the aging population, despite current economic uncertainties impacting the commercial real estate sector.
Looking ahead, lower interest rates are expected to fuel medical office building investments. However, the medical labor market is struggling to keep up with the expansion, facing a notable shortage of specialists, particularly physicians and nursing staff.
You must be logged in to post a comment.