The Class A asset comprises two fully leased medical office buildings totaling 42,857 square feet. The property was acquired by a joint venture between Anchor Health Properties and an existing institutional equity partner. The seller was Makena Medical Buildings Temecula, LLC, a local developer with a track record of successful medical developments throughout San Diego and Riverside County.
Travis Ives, Gino Lollio and Scott Niedergang of Cushman & Wakefield’s U.S. Healthcare Capital Markets Team represented the seller in the transaction.
“The Makena Medical Buildings embody the characteristics sophisticated medical investors like Anchor Health Properties look for: best-in-class construction within close proximity to strong hospital campuses anchored by the dominant medical providers in the market,” said Travis Ives, Managing Director. “This acquisition will make a great addition to their growing portfolio of medical office buildings in the region.”
Ives continued, “Traditionally not a seller, Makena saw this as an opportunity to take advantage of favorable market conditions and raise capital for future projects in their pipeline.”
Consisting of two (2)-story buildings located at 31150 & 31170 Temecula Pkwy, the property is located down the street from the Temecula Valley Hospital. The buildings were recently constructed in 2015 and feature a variety of medical specialties including urgent care, cardiology, gastroenterology, family medicine and pediatric care.
Ives added, “The medical office sector continues to show strength during the pandemic. In addition to the traditional medical office investors that were already in this space, we’re now seeing an influx of new capital crossing over from other product types seeking the dependable cash flow and recession-resistant nature of medical office buildings. We expect this trend to continue into next year, which should lead to heightened competition for premier assets like this.”
Since the onset of the pandemic, the Cushman & Wakefield U.S. Healthcare Capital Markets Team has now closed nearly 10 transactions exceeding well over $100 million.