Pasadena Medical Office Asset is Meridian’s Largest Acquisition
- Feb 01, 2016
By Alex Girda, Associate Editor
Pasadena, Calif. – A medical office campus located in the vicinity of the Huntington Memorial Hospital in Pasadena recently became Meridian Property Company’s largest building acquisition. Known as the Cotton Medical Center, the asset cost Meridian a reported $37.5 million. During what was Meridian’s eighth acquisition in the past 12 months, the buyer was represented by John Erickson and Brent Weirick of Colliers International, while seller Cotton Medical Center LLC worked with a team consisting of Kennedy Wilson Brokerage Group and Charles Dunn.
Cotton Medical Center is located at 50 Bellefontaine St. and offers a total of 115,000 square feet of medical office space. The property’s North Tower was originally developed in 1975, while the South Tower and the facility’s parking garage were added nine years later. The property stands on a 2.8-acre lot that offers proximity to the aforementioned Huntington Memorial Hospital, as well as the Shriners Hospitals for Children facility, which is currently under construction.
According to a recently issued press statement, the new owner plans to invest about $5 million the modernization of the facility including efficiency, safety, ADA, and machinery improvements. Operating at just 71 percent occupancy, the property will be upgraded to meet the expectations of the current market. Meridian COO John Pollock estimated that the company will need to invest roughly $49 million in the acquisition and modernization of the asset in order to reach full lease-out.