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Marcus & Millichap investment unit sells Pasadena medical center for $60M: sources
Meridian plowed $10M into renovations after buying the property in early 2016
A unit of Marcus & Millichap that focuses on developing and investing in medical offices has sold the Cotton Medical Center in Pasadena, nabbing a tidy profit nearly four years after buying it.
San Ramon-based Meridian offloaded the 115,000-square foot complex near Huntington Memorial Hospital, it said Monday. Cotton Medical Center is located at 50 Bellefontaine Street and 50 Alessandro Place.
The buyer was Healthcare Realty Trust, a Tennessee-based real estate investment trust. Terms were not disclosed but an industry pro estimated the purchase price at above $60 million. The buyer and seller were self-represented in the off-market purchase.
That deal would be a significant increase from the $37.5 million that Meridian acquired the complex for in January 2016. At the time, it marked the firm’s biggest transaction.
Meridian did plow over $10 million into renovations, and brought occupancy up to 86 percent, from 71 percent. Healthcare Partners and Quest Diagnostics are among the largest tenants.
The 2.8-acre office complex consists of a four-story, 52,000-square-foot building; plus a five-story, 62,750-square-foot building and an adjacent, underground garage.
This is only the second time in 43 years that the medical complex has traded hands in a city that is seeing a steady flow of office and residential development, and leasing deals.