OAKLAND, CA-Investcorp Real Estate, the US-based real estate arm of alternative asset manager Investcorp has acquired a medical office complex here for approximately $30 million. The medical complex, the Broadway-Webster Medical Plaza, is a 98,600-square-foot facility that houses offices of various medical and dental specialists.
Affiliates of ScanlanKemperBard sold the building and will retain an ownership interest. As part of the transaction, the new venture will put into action a 12-month plan to upgrade the facility, including seismic retrofitting, fire-life safety improvements and exterior facade improvements.
“Broadway-Webster Medical Plaza is a solid addition to our slate of recent acquisitions which includes not only medical offices but also hospitality, office, and retail properties,” explains Brian Kelley, a principal in Investcorp’s real estate group. “The property is ideally positioned adjacent to Sutter Health’s expanding Alta Bates Summit Medical Center and will benefit from our planned capital improvements over the next 12 months.”
Broadway-Webster Medical Plaza is located in the East Bay submarket known as “Pill Hill” for its concentration of major hospital and medical facilities. The building sits between the prominent Sutter Alta Bates Summit Medical Center and Kaiser Permanente Hospital, affiliates of two of the largest hospital systems in California.
There are currently 46 tenants at Broadway-Webster Medical Plaza including specialists in imaging, surgery, dentistry, internal medicine, oncology, orthopedics and gastroenterology. The occupancy rate at the property has averaged approximately 90% for the past 10 years, and over one-quarter of tenants renewed their leases in 2010.
This transaction follows Investcorp’s recent purchase of the Residence Inn Manhattan Beach in Los Angeles for $40 million, another property with a strong operating history and strong current returns as well as upside opportunity through a focused capital program. Both transactions reflect Investcorp’s focus on acquiring high-quality assets where there is an opportunity to improve operating performance, invest in capital improvements and maximize revenue, according to a prepared statement.
SKB affiliates will continue to manage and operate Broadway-Webster Medical Plaza. Third party leasing of the property continues to be handled by Lee and Associates.
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Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
