Two medical office buildings in Sherman Oaks sold to C.A. Development Operations, a Los Angeles-based investment company, for $20 million, according to brokerage CBRE Group Inc.
The property, known as Sherman Oaks Medical Center, consists of two two-story structures with 78,000 square feet located at 4835 and 4849 Van Nuys Blvd. CBRE’s Bradford McCarthy and Cody Chiarella represented the seller, REIT HCP Inc.
“This property presented the opportunity for the buyer to own an outstanding piece of real estate with tremendous future development potential in a prime location and in-place cash flow,” McCarthy said in a statement. “This is something many investors are seeking but is very hard to find in today’s competitive market.”
CBRE noted that “infill suburban office properties across Southern California have been appealing to a variety of investors as properties tend to trade at a discount to replacement cost with good in-place cash flow at rents that have not yet met or exceeded the previous peak.”