Investors have purchased a Glendale medical office building for $11 million, according to commercial real estate brokerage CBRE Group Inc. in Los Angeles.
The three-story Verdugo Hills Medical Center at 3600 North Verdugo Blvd. has nearly 27,000 square feet. It was 87 percent occupied at the time of the sale, and the buyer bought the building as a tax exchange after selling a prior building.
A Glendale-based entity known as the George Garikian Living Trust Feb 17, 2013, and La Canada Flintridge private investor Sadayappa Durairaj were the buyers, according to CoStar Realty Information Inc. The center was built in 2009 and last sold in 2013 as part of a 20-building portfolio.
CBRE’s Gary Stache and Mark Shaffer represented the seller, Dunham & Associates Investment Council.
Within a half mile of the USC Verdugo Hills Hospital in Glendale, the Class B property is part of the surrounding medical office market, according to CBRE.
“Due to changes in the way medicine is practiced, many physicians no longer need to have an office located on a hospital campus,” Stache said. “Instead, there’s a growing trend for doctors to run practices in locations closer to, and more convenient for, the patients they are serving.”
Shaffer added that medical offices, particularly in affluent neighborhoods, are a new target for private investors and that the new owner will likely be able to raise rents.