NEWPORT BEACH, Calif. – Meridian, a full-service real estate developer and owner of medical real estate, is pleased to announce that the firm has closed escrow on the purchase of Beverly Hills Medical Plaza, a 67,510-square-foot, three-story Class-A medical office building in Beverly Hills, California. The property was purchased as part of a joint venture with a large institutional investment partner for $81.5 million. The joint venture plans to invest significant capital in building improvements.
The property is located at 150 North Robertson Boulevard on a 0.92-acre parcel that sits along a highly visible, renowned retail corridor in Beverly Hills. “We’re very excited about the location of this property,” said Meridian Vice President, Acquisitions, R.J. Sommerdyke. “It has walkable access to world-class shopping and dining, five-star hotels, and most importantly, Cedars-Sinai Medical Center, one of the most esteemed medical care facilities in the world.
“Beverly Hills Medical Plaza was attractive to us for a variety of reasons,” continues Sommerdyke. “In addition to its excellent location, the property has a very strong tenant roster. Tenants include an on-site surgery center, cardiology, pediatrics, internal medicine, orthopedics, gastroenterology and more. Additionally, over 50% of the tenant roster has an affiliation with neighboring Cedars-Sinai Medical Center. Furthermore, there is a very strong tenant ecosystem and referral network within the building that gave us confidence in the long-term commitment of the tenants.”
The property has been family-owned since it was originally developed in 1989 and was 88% leased at the time of the sale. “The previous landlord took great pride in the property, and it has been very well maintained. Meridian intends to conduct capital improvements that will modernize common areas and will implement modest changes in operations to improve the tenant and patient experience,” Sommerdyke said.
“Our acquisition team has been tracking this property for years,” said Meridian CEO, John Pollock. “This is a generational asset in a highly coveted market with extremely high barriers to entry, so it’s very rare when a property of this profile comes available. We were finally able to secure the building in an off-market transaction and we couldn’t be more thrilled.”
Pollock continues, “This is Meridian’s largest acquisition to date by purchase price and is a great example of how perseverance can pay off. Ultimately, it was our strong relationships in the market that led to the acquisition. We look forward to building relationships with the existing tenants and bringing new, world-class tenants into the building.”
Newmark’s Kevin Shannon, Co-Head of U.S. Capital Markets, Rob Hannan and Ken White, both Executive Managing Directors, and Steven Salas, Senior Managing Director, all based in the firm’s Los Angeles office, represented the seller, Beverly Hills Medical Plaza Properties, in the transaction. Meridian was self-represented.
According to Sommerdyke, Meridian has approximately 500,000 square feet currently in development/redevelopment and will continue to pursue well-located healthcare opportunities across the western United States.
Founded in 1999, Northern California-based Meridian is a full-service real estate developer and investor specializing in high-quality, brand-enhancing developments with distinctive expertise in healthcare real estate. Meridian’s services are broad in scope, but meticulous in detail — from site evaluation and land acquisition to entitlement and planning to construction management.