LaSalle sews up Beverly Hills medical office for $75M

LaSalle Investment Management paid $74.4 million for a five-story medical office building in Beverly Hills.

Seller UBS Realty Investors took a slight loss on the deal for the building at 9033 Wilshire Boulevard, despite the area’s low vacancy rate, according to Commercial Observer. The building is just under 50,000 square feet, with the sale penciling out to about $1,500 per square foot.

The USC Keck Medical Center is the anchor tenant.

UBS Realty paid $75.1 million for the building in late 2015. The property was last renovated in 2011. It includes a surgery center and a pharmacy with drug compounding capabilities, according to the report.

Medical offices have been in high demand in Beverly Hills, with direct vacancy rates hovering in the single-digits for around two decades, according to Newmark, which represented UBS in the sale.

It has been a different story for the wider office market in L.A., where vacancy rates have surged because of the pandemic. Sublease space is flooding the market and overall vacancy is upwards of 15 percent.

LaSalle, a subsidiary of JLL, has an array of investments in the L.A. area, including residential properties and traditional offices. The firm made a number of acquisitions in L.A. in 2018, among them a Marina Park office complex and an apartment building in Warner Center.

UBS has also made some recent investments in the region. In 2019, the firm bought a 16-acre industrial development site in Pomona for $32 million.

[CO] — Dennis Lynch