A 50,986-square-foot on-campus medical office building in Burbank has sold for $23.9 million, or $468 per square foot.
Commercial real estate firm GPI Cos. purchased the property at 2701 W. Alameda Ave. from a private real estate investor. Mark Shaffer, Anthony DeLorenzo, Chris Bodnar, Lee Asher, Gerard Poutier and Cody Chiarella at CBRE Group represented the seller.
The property came onto the market for the first time since it was built more than 50 years ago. The building was 90 percent leased to a diverse mix of 22 medical tenants, most of them medical practitioners staffed at Providence Saint Joseph Medical Center in Burbank — one of the largest employers in the San Fernando Valley.
“Health care investors continue to target markets with strong tenant demand and proximity to a dominant hospital campus,” Bodnar of CBRE’s Healthcare & Life Sciences Capital Markets said in a statement. “The 2701 West Alameda property is very well positioned for the future.”
According to CBRE research, Los Angeles’s medical office vacancy in the first half of 2021 stabilized at 10.5 percent — well-below the overall office market vacancy. Burbank had one of the tightest medical office vacancies in the market at 4.9 percent.
The Tri-Cities has recorded big sales in this sector recently. In adjacent Glendale on Aug. 27, a multi-tenant medical office building on the campus of Glendale Memorial Hospital and Health Center traded for $24.8 million to MedProperties Realty Advisors, a Dallas-based health care-focused private equity firm. Brokerage Kidder Mathews transacted the deal.