October 7, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has arranged the $81.5 million sale of a three-story medical office building located at 150 North Robertson in Beverly Hills, California. Also known as the Beverly Hills Medical Plaza, the property is comprised of 67,510 square feet of Class A space and is leased to a diverse roster of esteemed physicians as well as other high-profile medical tenants.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan, Ken White and Senior Managing Director Laura Stumm represented the seller, a private family office. Newmark Senior Managing Director Steven Salas also participated in the sale and will lease the asset on behalf of the buyer, a partnership between Morgan Stanley and Meridian Property Company. As testament to the rare opportunity to acquire a premier medical office property in Beverly Hills, the seller had owned the property since they developed it in 1989.
“Investment capital remains highly motivated to acquire premier, well located medical office product post pandemic because of the vital in-person nature of the patient and doctor relationship,” said Hannan. “The medical office sector provides the resilient, safe harbor profile desired by many investors in today’s capital markets landscape.”
The Gensler-designed asset strikes a commanding landmark presence along Robertson Boulevard with its almost one-acre site. The property features an extremely rare and highly desirable porte cochère, the only of its kind among Beverly Hills medical buildings, which allows immediate patient building access and sits above three levels of subterranean parking. The property, which is 88% leased, includes an on-site surgery center as well as a pharmacy, and presents the buyer with the opportunity to push rents.
Salas added, “With its unrivaled points of entry, be it the porte cochère or the grandiose three-story atrium lobby, in concert with its proximity to Cedars-Sinai, 150 North Robertson provides one of Beverly Hills’ best tenant and patient environments. Morgan Stanley and Meridian have acquired an irreplaceable gem.”
150 North Robertson is centrally located, just minutes from Cedars-Sinai Medical Center and the UCLA Ronald Reagan Medical Center, offering tenants synergies with some of the nation’s most respected hospital systems. Over 50% of the tenant roster is affiliated with Cedars-Sinai, benefitting from the property’s immediate proximity to its campus. The property also presents accessibility to an array of premier retail, shopping and dining destinations along Robertson Boulevard.
The healthcare sector remains strong in the current economic environment, outperforming most other commercial property types through the pandemic, according to Newmark Research. Direct vacancy in medical office in Beverly Hills has remained in the single digits since 2002 and consistently achieves some of the highest rental rates in the country.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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