Meridian Buys 3-Asset MOB Portfolio in LA
- Jan 17, 2018
Meridian has acquired three assets on five parcels totaling 29,000 square feet in Downtown Long Beach, Calif., for $2.45 million. The company also plans to spend approximately $3.1 million on repurposing an existing, two-story 8,280-square-foot building into a new single-story 9,200-square-foot Type V-A ambulatory, out-patient clinic that meets OSHPD 3 requirements.
The company will preserve 50 percent of the existing exterior walls to maintain grandfathered status on legal non-conforming setbacks and parking. It will also abate all friable asbestos and lead-based paint, while concurrently performing restoration activities. The exterior of the building will receive updated wall cladding and stone to match the building’s current exterior, as required by the city. The remainder of the building will receive a new stucco finish, eyebrow canopies and a new storefront entry.
The project will also receive new utilities, Title 24 energy upgrades, a new roof, new HVAC units, a new parking lot and drought-resistant, water-efficient landscaping. Meridian will demolish two existing structures on site and merge the lots to create a single parcel for the development. Located at 1078-1090 Atlantic Blvd., the medical office building will house a dialysis clinic, which will provide treatment to patients who suffer from end-stage renal disease.
Attracting Highly Skilled Employees
Coldwell Banker Commercial President & Principal Becky Blair represented Meridian in their second purchase in Southern California, while Dan Weil, vice president at Colliers International’s Los Angeles office, represented the seller, a local private investor.
Demolition will begin this month, and construction will be completed by the end of the year. The value of the project upon completion is estimated to be $8.4 million. Dignity Health’s St. Mary’s Medical Center—a 389-bed, Level II Trauma Center—is located nearby.
“There are currently over 1,000 residential units and 700,000 square feet of commercial space either in the planning phases or under construction in the area,” said John Pollock, CEO of Meridian, in prepared remarks. “The clinic will bring highly skilled jobs to the area as well, including a nephrologist medical director, nurses, bio-technicians, facility administrators and social workers.”
In a recent deal, Meridian purchased The Laguna, a 57,057-square-foot medical office building in Laguna Hills, Calif., expanding the firm’s portfolio in Southern California.
Image courtesy of Meridian