LOS ANGELES—Brentwood Capital Partners has purchased the Loker Medical Arts Pavilion in the downtown area for $16 million.

The 61,000-square-foot building at 1513 Grand Ave. is located on the campus of the California Medical Center near Staples Center and L.A. Live. The building is 60% occupied and was built in 2010.

A private development company that was not identified constructed the building. Hunter Beebe, the managing principal of Healthcare Real Estate Capital, represented the seller and assisted Brentwood Capital with raising debt and equity.

The sellers “are centered across the country and were not able to focus on this asset because it was 60,000 square feet and 3000 miles away, so it sat lacking attention,” says Andrew Sobel, one of the managing partners for Brentwood Capital, in explaining the purchase opportunity.

The Loker deal is the “second or third health-related building” purchased by Brentwood Capital, Sobel tells GlobeSt.com. The interest in the sector reflects the founding partners' background. “We've had a lot of experience in the MOB and health care related buildings,” Sobel says. “(Managing partner) Paul Slye was with AEW back in the day when they turned into Alexander Property Trust. And I was at Arden Realty, was one of the founders with Richard, and had quite a bit of medical within our portfolio.”

Part of the Brentwood Capital strategy is focused on medical office buildings, “either on hospital campuses or in and around hospital teaching institutions,” Sobel says. “Typically we're add-value guys. We don't just buy core.”

The Loker property was purchased with an institutional capital partner that he declined to name. “We have a strategic plan with them to build a portfolio of MOBs,” says Sobel. “We will buy anything from Denver to the west.”

The firm, founded in 2005, has 14 buildings in its portfolio, including some non-medical buildings. Sobel says Brentwood Capital will stay away from the commodity office buildings that are a large focus of their former employers “We're focused on destination-oriented real estate,” he says. “Small assets that are $25 million and less that keep us out of the way of bigger players.” Most of the assets they buy are off-market, he adds.

The Loker building will see its common areas refreshed and its exteriors refurbished to blend in better with its location. “It has an Orange County feel right now, with light pastels and stucco exterior,” Sobel says. He anticipates spending less than $250,000 on renovations. “We're just reintroducing and refreshing it,” he adds.

Brentwood Capital is hoping to close two more medical offices this year, Sobel says. “We're pretty active. That's (Loker) the biggest deal we've closed this year.”

As reported earlier by GlobeSt.com, healthcare REITs are seeing billions pouring in.