The Real Deal Los Angeles

Stockdale buys medical building in DTLA for more than $50M

Firm continues to assemble LA medical portfolio
2100 West Third Street Medical Office Bob Safai

The building at 2100 West Third Street and broker Bob Safai

Continuing its efforts to acquire a portfolio of L.A. medical properties, Stockdale Capital Partners bought a Downtown medical office building for more than $50 million in a deal that closed Friday, The Real Deal has learned.

Stockdale paid the seller, a joint venture between Watt Investment Partners and Rockpoint Group, more than $357 a square foot for the fully-occupied 140,000-square-foot Class A medical office building at 2100 West Third Street, sources said.

The per-square-foot price it paid for was slightly higher than area averages, according to CoStar Group. But the markup is unsurprising when you factor in the tenants: UCLA, Children’s Hospital Los Angeles, ViraCor-IBT Laboratories, and the House Ear Clinic among them.

Bob Safai, Matt Case and Brad Schlaak of Madison Partners represented the sellers in the sale.

“Hospital-adjacent medical office buildings with value-add potential are rare throughout Southern California,” said Safai, citing a large amount of interest in the property from investors.

In November, Stockdale, which is an arm of Westwood real estate firm Triyar Cos. Inc., acquired a Santa Monica medical building at 2825 Santa Monica Boulevard for $38.5 million. There were murmurs in the industry that the firm was looking for other medical buildings in L.A. County to assemble into a portfolio. There now seems to be some basis for those rumors.