NORTHRIDGE MEDICAL & PROFESSIONAL PLAZA
9535 Reseda Blvd., Northridge
Square Footage: 39,849
Deal Value: $13.8 million
Marcus and Millichap was selected to exclusively list for sale Northridge Medical & Professional Plaza, a three- story 39,849 square foot medical office building located in Northridge. Located at 9535 Reseda Boulevard, one of the San Fernando Valley’s primary north-south arterials, the property is situated on a 73,616 square foot corner parcel of land. The property has maintained a historical occupancy north of 90% over the past decade and was 92.44% occupied at the time of listing. The average in-place monthly rent was $2.710 per square foot. The property was occupied by a mix of medical and dental tenants, as well as general professional tenants; many of whom had been located at the property for over a decade.
There were a few hurdles the team had to overcome throughout escrow. To begin with, there were a large percentage of month-to-month and/or short terms tenants, limiting the available financing options to the investment community. The actual buyer’s lender ended up requiring a $500,000 holdback at closing until the buyer was able to
get the property stabilized with longer term leases. At the time of the listing the property was 92.44% occupied, but throughout the duration of escrow, one of the tenants vacated dropping the occupancy down to 88% at the time of sale.
The property sold for $13,775,000 or $345/sf (~Approximately 8% above the average $/sf of the West SFV office submarket). In-place CAP rate was 5.05% after the tenant vacated on the second floor.
