By Meghan Hall
An East Coast-based healthcare investor has officially entered the Bay Area market. In a deal that recently closed, Charlottesville, Va.-based Anchor Health Properties, along with Morgan Stanely, purchased 1720 El Camino Real in Burlingame for $64.4 million, or about $607 per square foot. The sellers were Lincoln Property Company and Angelo Gordon.
The property totals 106,000 square feet and is 88 percent leased, according to the San Francisco Business Times, who first reported the transaction. Currently, the asset is leased to a mix of tenants, including Stanford Healthcare, Sutter Health, DaVita Dialysis and other medical providers such as Mid-Peninsula Endoscopy Center, and Home and Hope.
The building was recently renovated and the transaction also included a parking garage. The property’s new owner, Anchor Health Properties, was originally founded in 1985 as a developer of retail properties. For the past 35 years, the firm has focused solely on medical facilities. Currently, the company has more than six million square feet of healthcare assets under management and has developed more than three million square feet of space.
“…We understand patient flow, effective design and the importance of materials that adapt well to evolving future needs,” Anchor Health’s website states. “Combined with our retail expertise, we use these observations to further enhance our development projects and respond to the new healthcare landscape.”
Until now, the firm’s portfolio has been spread across the country in cities such as Denver, Philadelphia, Knoxville, Atlanta, Washington D.C. and San Diego.
Through the United States, the healthcare industry and medical office market were impacted by COVID-19, but the sector saw a quick rebound compared to many other product types. While medical office building sales fell 12.7 percent in 2020, employment rebounded quickly, with healthcare unemployment only down 1.5 percent year-over-year, according to an April 2021 report released by CBRE. CBRE predicts that medical office properties will see strong investor interest thanks to stable pricing and transaction levels.