Holliday Fenoglio Fowler, L.P., (HFF), on behalf of the owner, is marketing Beach Boulevard Medical Pavilion (BBMP) for sale. The fully leased, best-in-class property is a newly constructed outpatient medical office building and four-story parking structure located in Orange County, California, at a signalized hard corner intersection on famed Beach Boulevard and on the Huntington Beach Hospital (Prime Healthcare) campus. Highly sought-after core characteristics include a nationally recognized and investment-grade rated health system anchor tenant, high-acuity services on long term leases, irreplaceable site on a prominent health system campus and superior demographics in a coastal Southern California location.
Thoughtfully designed by Ware Malcomb with Class A construction and extensive build out of tenant spaces, the medical office property for sale was completed in May of 2017. The nearly 90-percent investment-grade tenancy from MemorialCare (Fitch: AA-) and Fresenius (Fitch: BBB-) provide high-acuity services that include urgent care, multi-modality radiology, dialysis and multi-specialty care. Along with a successful MemorialCare affiliated pediatrics group, together they occupy the entirety of the 44,233 rentable square feet. With the weighted average lease term more than 14 years, a new owner has the opportunity to benefit from a rising medical market that has seen asking rents increase 25 percent year-over-year within a supply-constrained submarket.
Beach Boulevard Medical Pavilion is a consolidation of three smaller area MemorialCare Medical Group locations and an expansion, making it a mission-critical location for both MemorialCare Medical Group and Fresenius. In March 2017, MemorialCare Medical Group also recently opened two other locations, Fountain Valley and Long Beach, which specializes mostly in services geared toward women. MemorialCare Health System, a non-profit health system servicing Los Angeles and Orange County, comprises six hospitals, including the 240-bed Orange Coast Memorial Medical Center located just two miles from BBMP. In February of 2016, MemorialCare Health System entered into a joint venture partnership with Fresenius to operate 15 dialysis clinics in Orange County and Los Angeles, inclusive of their location within BBMP.
Beach Boulevard Medical Pavilion embodies a generational opportunity to acquire a heatlhcare building for sale with true core characteristics in a dense coastal Southern California submarket, providing an investor rising in-place cash flow with investment-grade rated anchor tenants in a community with exceptional demographics. For more information on Beach Boulevard Medical Pavilion or other medical properties for sale, please contact Evan Kovac, Andrew Milne or Derreck Barker in HFF’s San Diego and Orange County offices. To learn about financing options, contact John Chun. Click here for our real estate investment sales search page.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker Licensed with the California Department of Real Estate, License Number 01385740.