Anchor Health Buys San Diego Hospital Campus MOB
- Jul 26, 2017
Anchor Health Properties acquired Fletcher Parkway Medical Center, a mission-critical, 82,024-square-foot medical office building in the San Diego suburb of La Mesa, Calif. The company purchased the fee-simple asset free and clear of existing debt from The Abbey Co. HFF represented the seller.
Located at 8881 Fletcher Parkway, just north of the Interstate 8/California 125 interchange in La Mesa, Fletcher Parkway Medical Center is adjacent to Sharp Grossmont Hospital. The class B asset was built in 1985 and is located in an area with a population of 72,293 and average household income of $75,075, according to Commercial Café.
The property was 81 percent leased at the time of the transaction. Anchored by Sharp HealthCare and Surgical Care Affiliates, the three-story property provides various services, including imaging, a surgery center, radiology, laboratory, diagnostics, cardiology, pediatrics, ophthalmology, rehabilitation and hospice. Sharp HealthCare leases 28,440 square feet or 43 percent on triple-net basis with staggered expirations from 2018 through 2023.
Medical market at record highs
“Fletcher Parkway Medical Center represented the rare opportunity to acquire an institutional-quality, value-add medical office building on the campus of a market-leading, West Coast health care system,” said HFF Managing Director Evan Kovac, in prepared remarks. “The new owner has the ability to lease the remaining vacant space in a submarket where occupancy and rental rates are near record highs.” Kovac, Associate Andrew Milne and Senior Associate Trent Jemmett led the HFF investment sales team. Kovac has recently represented the seller of a medical office building in the Del Mar Heights/Carmel Valley submarket of San Diego.
The current overall San Diego County direct medical space vacancy rate stood at 6.6 percent in the first quarter, according to a JLL report. The weighted average asking rental rate for medical office space registered a 4.9 percent year-over-year overall county increase.
Image courtesy of Commercial Café