Meridian buys Pasadena medical building for $37.5M

Los Angeles /
Jan.January 29, 2016 12:43 PM

The Tri-Cities saw investment sales slow in the fourth quarter, but Pasadena is quickly getting back in the game in the new year

Case in point: Meridian Property Co., under the guidance of its Southern California acquisition manager Andrew Saba, bought Cotton Medical Center, a 115,000-square-foot medical office complex in Pasadena for $37.5 million in a deal that closed this morning. It’s the first time in 40 years the two-building property at 50 Bellefontaine Street and 50 Alessandro Place has traded hands.

Meridian, which is a division of Marcus & Millichap, paid $303 a square foot to the seller,  a limited liability corporation called Cotton Medical Center. Cotton is a partnership of doctors led by managing partner Dr. Bill Chin. Many of them were part of the original development group and had offices in the mid-rise complex, comprised of one building that was built in 1975 and another in 1985.

The sale price would have been on the low side, were it not for the fact that Meridian plans on spending between $3 and $5 million on renovations to the property that will increase its value, rents and occupancy, said Linda P. Lee, senior managing director at Charles Dunn Co.’s Glendale office. Lee represented the seller along with William Boyd and Scott Unger of the same office, as well as Fred Cordova, Ryan Eddy and Michael Puleo of Kennedy Wilson Brokerage Group. John Erickson and Brent Weirick of Colliers International represented Meridian.

Meridian will upgrade the common areas and improve the exterior of the building, Lee said. It expects that the improvements will increase rents and occupancy at the property, which is at 75 percent, and ultimately make the building value rise well beyond $400 a square foot. With those expectations, the price was quite affordable, she said.

Healthcare Partners, Quest Diagnostics and Lab Corp. are the three biggest tenants of the 38 in the complex.

 
 

Related Articles

arrow_forward_ios
Kings Villages (Rent.com)
Jonathan Rose Companies buys Pasadena complex for $223M
Jonathan Rose Companies buys Pasadena complex for $223M
Red Oak Investments' Alex Wong and A-1 Trailer Park (Google Maps, Red Oak)
Presto on PCH: apartment developer plans to make trailer park disappear
Presto on PCH: apartment developer plans to make trailer park disappear
New reality for Girardi, Jayne: ask on Pasadena estate drops to $8.2M
New reality for Girardi, Jayne: ask on Pasadena estate drops to $8.2M
New reality for Girardi, Jayne: ask on Pasadena estate drops to $8.2M
The portion of land with renderings of proposed development (LoopNet)
6 percent of Bel Air on discount
6 percent of Bel Air on discount
600 East Broadway (SRS)
$43M price check at Vons supermarket in Long Beach
$43M price check at Vons supermarket in Long Beach
Lone Star Funds founder John Grayken and Westin LAX (Lone Star, Marriott)
Price revealed: Lone Star paid $71M for Westin LAX
Price revealed: Lone Star paid $71M for Westin LAX
CGI+ CEO Gidi Cohen and 5200 South J Street in Oxnard CA (CGI+, Google Maps)
CGI+ buys Ventura County apartment complex
CGI+ buys Ventura County apartment complex
Madison Realty Capital extends LA push with $91M loan
Madison Realty Capital extends LA push with $91M loan
Madison Realty Capital extends LA push with $91M loan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...