Los Angeles – Aug. 8, 2016 – CBRE Group, Inc. announced the sale of a three-story medical office building in Glendale, California, to a 1031-exchange buyer for $10.98 million.
The 26,803 square foot property, located on 3600 North Verdugo Boulevard, is 87 percent occupied by a total of 12 tenants. CBRE’s Gary Stache and Mark Shaffer represented the seller, Dunham & Associates Investment Council, in the divestiture of the building, which also features four levels of subterranean parking. The unidentified buyer was represented by an outside broker.
The high image boutique property, which contains suites ranging from 680 square feet to 3,441 square feet, is located in an established infill medical office market with low vacancies and limited new competing product. It is surrounded by affluent households and sits within half a mile of the USC Verdugo Hills Hospital.
“Due to changes in the way medicine is practiced, many physicians no longer need to have an office located on a hospital campus,” according to Stache. “Instead, there’s a growing trend for doctors to run practices in locations closer to and more convenient for the patients they are serving.”
"We are continuing to see a trend of high net worth private investors gravitating toward medical office buildings due to strong long-term fundamentals in the healthcare space,” said Shaffer. “There is tremendous demand for boutique medical space in affluent neighborhoods such as this. The new owner will benefit from near-term stability and long-term upside through anticipated rent growth.”
Glendale has been the primary driver of growth in the Tri-Cities submarkets during the recovery, according to CBRE research. Office fundamentals are expected to continue to improve in the city. Over the next four quarters, sustained positive growth in Glendale will likely drive vacancy rates down and asking rents higher by as much as 4 percent, according to CBRE Econometric Advisors.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the
world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
