Meridian Sells Recently Completed Northern California MOB
- Nov 22, 2019
Meridian has closed escrow on the sale of a 13,600-square-foot dialysis clinic in Stockton, Calif. A Northern California private investor spent $7.5 million for the asset, which represents a 5.2 percent cap rate. Last month, Meridian acquired a 100,000-square-foot office building in San Mateo, Calif.
Cushman & Wakefield Executive Director Paul Beckwith worked on behalf of the buyer. Executive Director Chris Sheldon, also with Cushman & Wakefield, represented the seller.
Located at 7500 W. Lane, the asset is adjacent to Kaiser Permanente’s Stockton medical offices. In 2018, Meridian purchased a 2.1-acre site with a 7,500-square-foot building to construct the dialysis clinic. According to Executive Vice President Mike Conn of Meridian, the company demolished the existing structure to build the state-of-art facility in less than 10 months. The project architect was Harriman Kinyon Architects, Kier and Wright served as the civil engineer and the general contractor was H2 Builders.
“There is continued speculation that a recession may be on the horizon in the next 12-18 months and that the market may be softening. Buyers want this type of product in their portfolio and are still willing to pay lower cap rates for it, potentially as a hedge against a correction,” Conn told Commercial Property Executive.
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