Newmark has announced the sale of a 64,000-square-foot single-tenant medical office building located in the City of Covina. The sale represents one of the largest medical owner/user sales in California for 2017, according to CoStar statistics.
Newmark’s Senior Managing Directors Drew Sanden, Taylor Ing and Senior Associate Scott Maples represented the seller Procto Inc., a group of former Magan Medical Clinic physicians, in the transaction to the buyer Genesis KC Development, LLC (subsidiary of HealthCare Partners, LLC).
The Property, located at 420 W Rowland Street in Covina, is fully-occupied by Magan Medical Clinic. In June 2017, HealthCare Partners, a DaVita Medical Group and division of DaVita Inc. (NYSE: DVA), and Magan Medical Clinic, a respected multispecialty medical group in Los Angeles County’s San Gabriel Valley, announced that they entered into a definitive agreement by which Magan would join HealthCare Partners. DaVita Inc. recently announced it is now selling its physician network arm for $4.9 billion, to Optum, part of UnitedHealth Group. HealthCare Partners plans to continue to operate out of the property with extensive renovation plans for the facility.
“This sale represents the continued consolidation of medical groups within California, who are seeking scale and diversity of practice to remain competitive in changing market conditions” said Sanden. “Additionally, with rising land and labor costs, many groups are choosing to repurpose second generation facilities over completing ground up construction.”
Newmark is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, Newmark’s strong foundation makes it one of the most trusted names in commercial real estate. Newmark’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing, corporate advisory services, consulting, project and development management, property and corporate facilities management services, valuation and advisory services, and capital markets services provided through its Newmark Capital Markets brand. For further information, visit www.ngkf.com.
Newmark is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.