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Welltower Buys Sacramento MOB for $46M

4 months ago

The property previously traded in 2011 for less than half the current price. The post Welltower Buys Sacramento MOB for $46M appeared first on Commercial Property Executive.

The four-story property came online in 1990 and underwent cosmetic renovations in 2013. Image courtesy of Colliers

Welltower has acquired 1201 Alhambra, a 103,652-square-foot medical office building in Sacramento, Calif. NexCore Group sold the asset for $45.6 million, according to Sacramento County records. Colliers U.S. Healthcare Capital Markets facilitated the transaction.

The property previously traded in 2011 for $21.3 million, when the former owner bought the facility from AKT, CommercialEdge data shows.

Transaction activity in the medical outpatient sector has slowed down, showing a 40-basis-point contraction year-over-year as of March, a Marcus & Millichap report shows. According to the research, sales in the lower price range have affected the average sale price, leading to the need of having to find alternative financing for smaller assets.

Completed in 1990, the four-story building underwent cosmetic renovations in 2013. The property features 26,000-square-foot floorplates, three passenger elevators, controlled access and has 415 car parking spaces at a ratio of 4.1 spots per 1,000 square feet.

At the time of the sale, the facility was 80 percent leased by Sutter Health. Medical services include family medicine, internal medicine, bariatrics and PT/ST/OT, urgent care, on-site laboratory and an infusion clinic. The ambulatory surgery center features three operating rooms and specializes in orthopedic, spine, neuroscience, podiatry and rheumatology surgeries.

Located at 1201 Alhambra Blvd., the property is in downtown Sacramento, having access to U.S. Route 50. Other medical providers in the surrounding area include Sutter Medical Center, Mercy General Hospital, Concentra Urgent Care and Fort Sutter Medical Complex, among others.

The post Welltower Buys Sacramento MOB for $46M appeared first on Commercial Property Executive.