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Orange County Office Building Slated for Conversion

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This property in Newport Beach will turn into a medical facility. The post Orange County Office Building Slated for Conversion appeared first on Commercial Property Executive.

Exterior rendering of Newport Irvine Medical Center. The three-story facility will have a white and glass façade. — Upon redevelopment completion, the building will be rebranded as Newport Irvine Medical Center. *Image courtesy of Archer Property Partners and Real Estate Development Associates*

Archer Property Partners and Real Estate Development Associates have teamed up for an adaptive reuse project in Newport Beach, Calif. The duo intends to convert a 78,000-square-foot office building into a medical outpatient facility.

The partnership received unanimous approval from the Newport Beach Planning Commission this January to redevelop the property. MedWest Realty will handle the leasing efforts.

According to the project’s submitted timeline, the ownership will break ground on a new parking structure at the property in June and commence building renovations in September. Completion is expected next spring, with medical tenants to move in by summer.

The 1980-completed building is at 3300 Irvine Ave., close to John Wayne Airport and less than 5 miles from downtown Irvine, Calif. Other medical providers in the area include UCI Health Irvine Hospital and UCI Health Gottschalk Medical Plaza.

Archer and REDA acquired the asset, dubbed Newport Irvine Center, in 2023 for $18.5 million. The three-story building currently has floorplates averaging 25,557 square feet and two passenger elevators, according to CommercialEdge information. The property also has more than 270 parking spaces.

Upon repurposing, the building will be renamed to Newport Irvine Medical Center. The facility will feature a new three-story atrium, enhanced common areas and elevators and will support a wide range of healthcare providers, from specialty practices to wellness services.

MOB sector poised to grow

The medical office building sector is poised for a 10.6 percent inventory growth over the next five years, a JLL report shows. This growth is mainly driven by the aging population, even though the commercial real estate sector is currently facing economic uncertainties.

However, construction activity was rather scarce in the last quarter of 2024, with project starts at just 0.8 percent of the existing stock, a record low. Absorption rates surged during the same timeframe, surpassing 19 million square feet across the top 100 markets.

The post Orange County Office Building Slated for Conversion appeared first on Commercial Property Executive.