Los Angeles – Sept. 30, 2021 – CBRE announced the sale of a 50,986 square-foot on-campus medical office property in Burbank, Calif. for $23.9 million, or $468 per square foot, to GPI Companies, a locally-based, full-service commercial real estate investment, development, and operating firm.
Mark Shaffer, Anthony DeLorenzo, Chris Bodnar, Lee Asher, Gerard Poutier and Cody Chiarella with CBRE represented the seller, a private real estate investor.
This was the first time the property, located at 2701 W. Alameda Avenue, was made available for sale since it was built more than 50 years ago. The building is 90.4 percent leased to a diverse mix of 22 medical tenants, with most of the space occupied by doctors on staff at Providence Saint Joseph Medical Center, located directly across the street. PSJMC is the primary market demand driver and one of the largest employers in the San Fernando Valley.
“The transaction received strong interest and multiple offers,” said Shaffer. “Well-located assets supported by strong underlying fundamentals continue to command robust buyer interest. In this case, the property’s value-add proposition in the near-term provides a compelling investment opportunity for the new owner to boost future value.”
Stable healthcare employment and strong medical tenant demand have helped buoy the medical office market in Greater Los Angeles and drive modest rent growth in the region, according to CBRE Research.
“Healthcare investors continue to target markets with strong tenant demand and proximity to a dominant hospital campus,” Chris Bodnar of CBRE’s Healthcare & Life Sciences Capital Markets. “The 2701 W Alameda property is very well positioned for the future.”
The Los Angeles medical office vacancy in the first half of 2021 stabilized at 10.5 percent and settled well-below the overall office market vacancy, according to CBRE research. Specifically, Burbank has one of the tightest medical office vacancies in Los Angeles, at 4.9 percent.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
About GPI Companies
Founded in 2008 as Goldstein Planting Investments, GPI Companies is managed by Cliff Goldstein, Drew Planting, and Lee Wagman. GPI Companies is a real estate investment and development firm that pursues a targeted range of properties where value can be enhanced through repositioning, redevelopment, or increased operational efficiency. The company and its principals have a history of delivering superior returns to their investors by successfully identifying and exploiting mispriced assets while at the same time minimizing volatility. GPI has the expertise and experience to execute projects of various sizes and complexity. With a team of seasoned real estate executives, the company’s real estate investments are managed and operated directly by GPI Companies. Capital partners include prominent private equity funds, public pension plans, offshore investors, and family offices. The three partners of GPI Companies have more than 100 years of combined experience and have acquired or developed over $6 billion in award-winning urban real estate assets and leased and managed more than 20 million square feet of commercial space.