UPDATED, 2:00 p.m., Nov. 11: Cedars-Sinai hospital, a long-time tenant of the office building at 6500 Wilshire Boulevard, purchased the property for about $295 million, or $646 per square foot, The Real Deal has learned.
The seller was Morgan Stanley, which acquired the 24-story Class A structure for $174 million in 2010, property records show.
Spanning about 456,000 square feet, the office property in the Miracle Mile submarket was built in 1986. Cedars-Sinai leases about 215,000 square feet for its administrative offices. Overall, the building is about 90 percent occupied.
Under Morgan Stanley’s ownership, Lincoln Property Company handled the building’s management.
The per square foot price far exceeded the $499 average for commercial sales on the Miracle Mile this past year, according to CoStar.
Cedar-Sinai’s had been renting most of the property’s space for its health system, according to a hospital spokesperson.
“It was more cost efficient to buy the building than to continue leasing,” he told TRD.
Morgan Stanley could not be immediately reached for comment.