Healthcare Property Advisors buys headquarters for $80M

Healthcare Property Advisors has bought its own headquarters office campus in North Orange County for $80 million.

The healthcare real estate investor bought the 288,000-square-foot campus at 915-975 West Imperial Highway and 950 Mariner Street in Brea, the Orange County Business Journal reported. The price calculates to $278 per square foot.

The seller was AdelFi, once known as the Evangelical Christian Credit Union, based out of the Brea campus, which developed its four buildings between 2002 and 2008.

The offices at Imperial Highway and Puente Street a mile west of the 57 Freeway were 89 percent filled at the time of the sale. St. Jude Medical Center occupies 77,000 square feet, while other tenants include business outsourcing provider Alta Resources and Acosta, a marketing agency.

AdelFi has been downsizing at the campus, and now takes up 12,000 square feet.

Blake Bokosky, Louis Tomaselli and John Chun of JLL represented AdelFi in the deal, while HPA represented itself. JLL’s Chun, Sam Godfrey and Anthony Sardo helped HPA secure financing for the acquisition.

“The office market has been difficult to finance, so it took a bit of creativity to close the deal given the current debt markets,” Bokosky told the Business Journal.

The office sale was among the biggest in Orange County in 2022, according to property records, and was the priciest for the city of Brea last year.

The largest office transaction in OC last year was the $235.3 million sale of Intersect, a four-building campus of 454000 square feet in Irvine. The June deal came out to $518 per square foot.

Healthcare Property Advisors is backed by La Palma-based The Innovation Institute, and is jointly owned by several health systems, including St. Joseph Health and Children’s Health of Orange County, based in Orange.

Last year, HPA sold a 104,700-square-foot medical office at 2727 East Imperial Highway in Brea to Duke Realty Corp. for $35.4 million. Duke, which was bought last year by Prologis, plans an industrial redevelopment at the site.

In 2019, it sold the building next door at 2767 East Imperial Highway to LaSalle Investment Management for $37.7 million. The building is used by St. Jude’s Center for Rehabilitation and Wellness.

— Dana Bartholomew

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