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Plastic surgeon buys Beverly Hills office for nearly $1,000 psf
Seller Alon Abady collects $21M for building, which will become a surgery center
A photo illustration of social media-famous plastic surgeon Daniel Barrett and 501 South Beverly Drive (Getty, Barrett Plastic Surgery, Google Maps)
A social media-famous plastic surgeon has bought an office building in Beverly Hills for about $921 a square foot, one of the priciest office deals in the last year on a per square foot basis.
Daniel Barrett, who runs Barrett Plastic Surgery and has almost 1 million followers on Instagram, bought 501 South Beverly Drive for $21.3 million, according to property records.
Ray Rowshankhah, the founder of Del Ray Realty, arranged financing for the deal, while Brandon Michaels at Marcus & Millichap represented the buyer.
Alon Abady, who owns a number of office buildings and hotels across Beverly Hills and West L.A., sold the building after owning it for more than 20 years, records show.
Barrett plans to build out about half of the building into medical space, fit for a surgery center with operating rooms and a medical spa, he confirmed over email. The remainder of the building would be leased out to tenants.
To close the deal, Barrett scored a $13.75 million loan from First Citizens Bank and more than $4 million in financing through the Small Business Administration’s 504 loan program, according to Rowshankhah.
In total, the deal was about 85 percent loan-to-value — terms that surpassed “usual market offerings for a commercial loan of this caliber,” Rowshankhah said.
Beverly Hills is a bright spot for L.A.’s office market, with a handful of deals trading for more than $900 a square foot in recent months, compared to Downtown Los Angeles, where office towers have traded for less than $140 a square foot.
Last month, sports betting company FanDuel paid $71 million for a 50,200-square-foot office building at 9000 Wilshire Boulevard, coming to $1,410 per square foot.
In a report from CBRE that looked specifically at the L.A. medical office market, the average price per square foot for the first three quarters of last year was about $360, compared to more than $600 for all of 2022. The average asking rate for medical office leases was $5.56, well above the L.A. market average of $3.86, but trailing pricey West Hollywood, Santa Monica and Westwood.