COMMERCIAL REAL ESTATE TRANSACTION ALERT
CBRE announced the sale of a medical office building, Latham Medical Plaza, in Riverside, Calif. to JKI Investment for $7.85 million.
CBRE’s Sammy Cemo, Anthony DeLorenzo, Gary Stache, Doug Mack and Bryan Johnson represented the sellers, Jolish Latham, LLC and Latham ZG, LLC, San Francisco-based private investors, in the transaction.
Located at 4361 Latham Street, the 31,201 square-foot, two-story building was originally built in 1991. DaVita Dialysis, which occupies nearly half of the rentable area and has been operating at the location since 1992, recently signed a 10-year lease extension. Latham Medical Plaza was 66 percent occupied at the time of sale.
The property is two miles from the interchange between SR 91 and SR 60, two major freeways that connect the Inland Empire to the Orange and Los Angeles Counties. Latham Medica Plaza is also within three miles of Riverside Community Hospital, a 478-bed facility with over 675 physicians and a staff of approximately 2,300. University of California, Riverside (UCR), a public university with an enrollment of roughly 23,000 students, is four miles from the site.
“With limited medical office building competition in the immediate submarket, this asset provides versatility in suite sizes to accommodate a variety of practices,” said Cemo. “Located only minutes away from Riverside Community Hospital, the property has an intrinsic value that is incredibly desirable for any physician looking for new space in the Riverside area.”
Riverside County boasts a medical office building vacancy of 7.8 percent, according to CBRE research. Strong tenant demand in a tight market will continue to support the value of this asset class, as CBRE Econometric Advisors has forecast medical office rents to grow 21.9 percent over the next five years.