Stockdale Capital Buys San Francisco MOB
Stockdale Capital Partners has paid $32.8 million for The MarinHealth Medical Plaza, an 83,789-square-foot medical outpatient building in Novato, Calif., a San Francisco submarket. Vukota Capital Management previously owned the asset, according to CommercialEdge.
This deal marks Stockdale Capital’s sixth purchase through its recently formed, U.S.-focused Healthcare Real Estate Investment Fund. The investment vehicle’s previous buy was Frisco Medical Village, a Class A, 37,943-square-foot medical facility in Frisco, Texas.
READ ALSO: These Markets Top MOB Investment Activity
The MarinHealth Medical Plaza is part of Rowland Plaza, a two-building, 142,856-square-foot complex. Vukota had acquired it for $36.8 million—or $257.3 per square foot—from Buchanan Street Partners, the same source shows.
Completed in 1997, the three-story building underwent renovations in 2017. Its anchor tenant is MarinHealth, which leases 72,888 square feet or 90 percent of the property. Services provided include primary care, OBGYN, laboratory, imaging, cardiovascular and dermatology.
Located at 75 Rowland Way near Sutter Health’s community hospital, the medical facility is 2 miles from downtown Novato and some 27 miles from downtown San Francisco. Other medical providers in the area include UCSF, Common Spirit and Stanford Health Care.
MOB investment activity expected to increase
The medical office real estate sector is flourishing. A recent Savills report forecasted a 26 percent rise in outpatient demand over the next decade, primarily due to the aging population.
Despite economic uncertainties affecting the broader commercial real estate sector, outpatient facilities continue to be in high demand. In addition, reduced interest rates are anticipated to enhance investment in this asset type.
However, this increased demand is straining the medical labor market, which is already facing a shortage of specialists, including physicians and nursing staff.
The post Stockdale Capital Buys San Francisco MOB appeared first on Commercial Property Executive.
