A 62,926 square-foot medical office building in the Eastern San Gabriel Valley recently came under new ownership. In a recent transaction, Magan Medical Clinic was purchased by Sierra Health & Life Insurance Co. for $49.32 million. The property was sold by IRA Capital, according to a Los Angeles third quarter office market report by brokerage firm Kidder Mathews.
Magan Medical is located at 20 W. Rowland Street in Covina. The new owners of the pilot office, Sierra Health, is a nationwide insurance provider offering both health and life insurance.
The medical care provider has been at the Covina office since 1967 and also has locations in Diamond Bar, La Verne, San Dimas and West Covina.
Overall, Magan Medical Clinic has 55 providers at its locations and services approximately 20,000 patients. The medical group offers primary care as well as a wide range of specialty care services, with some including cardiology, dermatology, endocrinology, neurology and oncology. In 2017, the company was acquired by Healthcare Partners, a division of DaVita Medical Group.
“Over multiple generations, Magan Medical Clinic has been proud to serve the communities of Covina, West Covina, San Dimas, Diamond Bar and La Verne,” said Dr. Bradley Rosenberg, president of Magan Medical Clinic said in a statement. “We chose to join HealthCare Partners, part of the nationally renowned DaVita Medical Group, so that together we could achieve even better care for generations to come.”
According to recent CBRE research, the office market has been helped out greatly by the medical office sector. With a growing need for medical facilities brought on by the COVID-19 pandemic, Los Angeles medical office market vacancy came in at 10.5 percent.
While still relatively high, the medical office market has seen higher demand over the past year than the overall office market in Los Angeles. According to the third quarter market report from Kidder Mathews, vacancy in the office market overall remains relatively high at 13.2 percent. Despite this, many are hopeful the market will make a comeback as leasing activity has picked up by four million square feet and approximately 55,000 office jobs made available over the third quarter.
