MURRIETA, CA—Lee & Associates-LA North/Ventura has transacted the sale of a 37-acre parcel of land in the Riverside County city of Murrieta for the development of a new Kaiser Permanente medical center. The deal was put together by Lee & Associates-LA North/Ventura principal Mike Tingus.
Tingus represented the seller, a private investment group, along with David Mudge, a senior vice president of Lee & Associates-Riverside, in the sale of the vacant land, which traded for $9.3 million.
“It is clear to all of us in real estate that hospitals have developed an enormous appetite for expansion since the passage of the Affordable Care Act,” Tingus said, “and Kaiser Permanente's decision to develop a new medical center reflects those expectations as well as the demographics and expected population growth in South Riverside County.”
Coincidentally, the transaction closed on the same day that the U.S. Supreme Court ruling upholding the Affordable Care Act's federal subsidies was handed down, although Kaiser had been seeking a new site for the past several years.
The parcel, located at the intersection of Mapleton Avenue and Keller Road, sits in Murrieta's medical and technology corridor as designated by the city's General Plan, along with neighboring Loma Linda University Medical Center-Murrieta.
All told, Kaiser expects to construct an 824,500-square-foot complex to include a hospital, diagnostic and treatment building, medical office building and a central energy plant to power it all over the next 25 years. The first phase of the project will be the construction of a LEED Gold 80,000-square-foot medical office building including a pharmacy, laboratory, imaging services and an urgent care facility.
The medical center is expected to supplement Kaiser's existing offices in Wildomar and Temecula.
“Kaiser identified the site about a year ago, and once they did, the decision-making happened rather quickly,” Tingus said, “but the size of the project made an environmental review necessary, and that's where most of the time was spent.”
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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.
