Marcus & Millichap investment unit sells Pasadena medical center for $60M: sources

Meridian plowed $10M into renovations after buying the property in early 2016

Meridian Vice President of Acquisitions R.J. Sommerdyke, Healthcare Realty President & CEO Todd Meredith and Cotton Medical Center
Meridian Vice President of Acquisitions R.J. Sommerdyke, Healthcare Realty President & CEO Todd Meredith and Cotton Medical Center

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.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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.