DALY CITY, CA—CBRE has arranged the disposition of 901 Campus Drive in Daly City, on behalf of Serramonte Ridge Medical Center Enterprises. Swift Realty Partners purchased for an undisclosed price. This transaction represents the second medical office building CBRE has sold, and assisted with financing, to Swift Realty Partners in 2014. In May of this year, CBRE sold The Foster City Medical Pavilion to the same buyer.
CBRE's Seth McKinnon, Bruce Paris and Simon Clark worked with Chris Bodnar of CBRE's national healthcare capital markets group to complete the sale, while Michael Walker and James Korinek of CBRE's debt and structured finance team assisted with financing. The 75,559 square-foot building was listed in the fourth quarter of 2012 and was 95% occupied at the time of sale. Despite a high level of interest, the transaction took some time to finalize.
“The seller allowed a longer than usual escrow period, which allowed the buyer to amend the long-term ground lease, renew three expiring leases, and execute a significant lease with Palo Alto Medical Foundation,” explained Seth McKinnon, vice president, CBRE. “Both groups worked extremely well together, ensuring a smooth and equitable transition of ownership.”
The sellers, Serramonte Ridge Medical Center Enterprises, developed the property in 1989 and have since occupied the majority of the premises. The building at 901 Campus is one of only two class A, off-site, purpose-built medical office buildings in Northern San Mateo County. Swift Realty Partners has plans to significantly enhance the building through cosmetic and capital improvements. The building houses physicians from eight Bay Area hospitals and has a significant patient entrapment area extending south through the San Francisco Peninsula and as far north as the outer avenues of San Francisco.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
