CBRE Secures 1031 Exchange Buyer for LA MOB
- Jun 15, 2017
CBRE Group Inc. arranged the sale of a net-leased medical office building in Norwalk, Calif., to a local buyer for $5.4 million or $284 per square foot. CBRE’s Gary Stache, Mark Shaffer, Doug Mack and Michael Spiezia represented the seller, Stanton Road Capital, in the transaction that was part of a 1031 exchange.
Located at 11832-11846 Rosecrans Ave., the 18,984 square-foot property is fully leased until February 2027 to Avanti Hospitals, which owns and operates four community hospitals within Los Angeles County. The single-story was built in 1976 and is situated across the street from Norwalk Town Square shopping center and has easy access to interstates 5, 605 and 105.
What drives MOB demand?
“Many investors are looking for ease of ownership,” said Stache in prepared remarks. “This property provides ease of ownership with stable, passive income and a low risk, in-place cash flow yield.”
According to CBRE, private investors, 1031-exchange and foreign buyers have been driving the demand for medical facilities. “Many of these investors have never owned medical before and are drawn to the perceived stability of the cash flow and the asset type,” Mack said in a prepared statement.
Image courtesy of CBRE