Stockdale Launches Healthcare Fund, Buys Medical Center

Stockdale Capital Partners has launched the SCP Healthcare Real Estate Income Fund, which the Los Angeles-based real estate firm says will focus on acquiring core-plus health care real estate properties across the US.

Stockdale kicked off the fund with the purchase of a 147K SF medical center in Los Angeles located at 2100 West 3^rd Street for an undisclosed price. According to the company, the building is 99% leased to tenants including Children’s Hospital of Los Angeles and AltaMed Health Services.

“We believe now is an excellent time in the market to acquire best-in-class medical office assets,” said Daniel Michaels, managing partner, Stockdale, in a statement.

Stockdale, established in Los Angeles about 30 years ago, has $2.8B in assets under management, including a portfolio of hotels and office buildings in the western US stretching from San Francisco to Austin.

Last Fall, the vertically-integrated real estate investment firm, won approval from the Los Angeles City Council for the development of a 145,000 square-foot, Class-A medical building on Los Angeles’ Westside, adjacent to the City of Beverly Hills at the intersection of San Vicente and Wilshire Boulevards.

Approved unanimously by the Los Angeles City Council at its October 28 meeting, construction on the project at 656 S. San Vicente Blvd.is expected to begin in Q4 2023.

“We are excited to bring this best-in-class medical office development to West Los Angeles, a market which remains extremely underserved with outdated product,” Michaels said, in a statement issued when the project was announced.

“Given the extreme health concerns of these past few years due to the pandemic, access to quality medical care remains an absolute priority, and we believe this building will serve the neighborhood well. We are already in active discussions with leading healthcare providers for prospective tenancy,” he said.

Located near major health care facilities including Cedars-Sinai Medical Center, UCLA Medical Center and numerous other medical specialists’ offices in the area, 656 S. San Vicente Blvd. is the first major outpatient medical office building built in the area in over 20 years.

The area has experienced pent-up demand from health care systems and physicians, with an extremely low vacancy rate of 5% or less since a Beverly Hills medical office moratorium was enacted in 2011.

656 S. San Vicente Blvd. is designed to accommodate modern, higher-acuity procedures including surgery and other invasive outpatient services that are not easily-placed in the older building stock of the West Los Angeles office markets. In addition to patient-centered medical space, 656 will also be home to lab space.

The built-in sustainability features of 656 S. San Vicente Blvd. include living gardens on the ground floor and upper floors, low-water usage and drip irrigation, increased plantings and greenspace, potential for building-integrated solar, use of recycled materials, high efficiency heating and cooling systems, and energy-efficient design and green spaces throughout. The building will also include electric vehicle charging stations.