A newly renovated medical building in Tarzana is more than 60% leased at higher rents than before it was updated.
The two-story, 45,000-square-foot building, which is located at 19500 Ventura Blvd. and has a working name of Tarzana Health Center, will offer services ranging from dentistry and pharmaceuticals to primary care and urgent care. It will also have a surgery center.
According to Beverly Hills-based Greenbridge Investment Partners, owners and developers of the building, the goal when creating the property was to make it feel less like a medical building and more like a spa.
The building was designed by Michigan-based architecture firm Harley Ellis Deveraux. The firm took an old, outdated boxy structure and converted it to include high-end features, such as valet parking and an open-air atrium lobby accenting a two-story vertical living wall that uses extensive greenery to create a productive and serene environment for patients and clinicians alike, according to Greenbridge.
“We were able to create an environment that promotes wellness in an area that is becoming the hub for health care,” Fareed Kanani, co-founder and principal at Greenbridge, said in a statement. “Doctors are excited about building contemporary brand-new offices designed to their needs and specifications rather than the traditional, tired medical offices that are in now.”
Not only did Greenbridge look to transform the interior of the building, but the company also wanted the exterior to garner attention.
“We wanted people to see it off the freeway,” Kanani continued. “So that’s where the horizontal LED lines and lighting came from. At night, it’s very prominent. It has a great presence and identity to it, which was important to us, because, before, you blinked, and you missed it. It was camouflaged. It was brown, it had no identity.”
Greenbridge Investment Partners spent $5 million to medically rezone and reinvent the facility, which has resulted in leases spanning the entire ground floor, as well as a portion of the second, bringing the total occupancy rate to 68% leased so far.
Prior to renovations, rents ranged from $2.50 to $3 per square foot with a modified gross lease, meaning tenants agreed to pay for certain operating expenses on top of rent. Current rates are quoted at $3.90 per square foot and are triple net leases, meaning tenants agree to pay their share of all operating expenses on a property.
“In this environment, I would say we’re exceptional in terms of our ability to creatively structure leases and work with the tending community,” Kanani said. “We have a very extensive investment grade tenant list. We’re very proud of that.”
The two most recent tenants to sign include United Medical Doctors, an independent medical and surgical group that will be taking over approximately 20,000 square feet of space, including a surgery center, a multi-disciplinary care clinic and an urgent care center. In addition, a pharmacy that hasn’t yet decided on a name is leasing more than 2,000 square feet.
While the lengths of these leases were not disclosed, it was stated that, together, they will generate more than $18 million in excess of 10 years.
“This project delivers an easier, more effective and efficient way of delivering health care to residents,” Sean Hashem, co-founder and principal at Greenbridge, said in a statement. “When we started this several years ago, we saw an opportunity for medical demand in the market and created a unique project unlike any other in Tarzana.”
The two tenants are expected to move in during the third quarter of next year.
Construction on the building began in late 2020 and took 16 months to complete. Greenbridge is continuing to seek tenants to fill the remaining 14,400 square feet of space.