(EDITOR’S NOTE: According to sources with knowledge of the transaction details, the property sold for around $12 million, or just over $400 per square foot.)
(San Francisco, CA) Anchor Health Properties (Anchor), a national full-service healthcare real estate development, management, and investment company focused exclusively on healthcare facilities, has recently closed on the acquisition of a newly built, two-story, nearly 30,000 square foot Class A medical office building located in the Fairfield submarket of San Francisco, California. Strategically located on an outpatient medical campus, the asset was acquired through a joint venture with institutional equity partner, Harrison Street, a leading investment management firm exclusively focused on alternative real assets.
2470 Hilborn Road enjoys close proximity to NorthBay Medical Center, Solano County’s largest and most comprehensive hospital campus featuring 183 beds and the County’s only formal trauma response center. The facility also features adjacency to a NorthBay primary care center as well as a Kaiser outpatient campus.
The property is anchored by NorthBay Healthcare, a locally-based non-profit healthcare organization with the largest medical footprint in Solano County, which utilizes the space for clinical services such as occupational medicine and specialized behavioral health services. This location also houses some of the health system’s non-clinical medical administration offices. The health system also operates an urgent care and other outpatient clinics in two adjacent buildings located in the same office park as the newly acquired asset.
NorthBay Healthcare is joined by Retinal Consultants Medical Group, one of the premier retinal subspecialty groups in Northern California, providing complementary services, including retina surgery services.
Built in 2015, the facility features sustainable elements, including a state-of-the-art energy management system, a solar panel system, and covered parking.
“With our second successfully closed transaction in the San Francisco MSA, we are excited to continue our support of the area’s status as a core clinical medical market while growing our owned and managed portfolio in Northern California,” shared James Schmid, Chief Investment Officer and Managing Partner with Anchor. “Situated in a prime location, the NorthBay MOB provided us with an exceptional opportunity to acquire a state-of-the-art facility in a dynamic suburban medical marketplace. We are looking forward to building a long-term, mutually beneficial relationship with NorthBay Healthcare and Retinal Consultants Medical Group as they provide high-quality healthcare to the surrounding community.”
Ilya Hvostikov and Albert Lord of Anchor’s investments team led the acquisition process. Mr. Hvostikov echoed Mr. Schmid’s comments, “NorthBay MOB’s qualities align with our strategic investment thesis – core and core-plus assets featuring a strong, clinical medical tenancy with a high-visibility location. The facility offers a synergistic group of health system and regional practices advantageously positioned within close proximity to the county’s largest and most comprehensive hospital campus . Our expertise in acquiring, managing, and leasing healthcare real estate adds exponential value that will contribute to the asset’s continued success.”
Lands End Capital Advisors provided advisory services on behalf of the Seller. Capital One provided secured debt financing for the project. As the new owner of the facility, Anchor Health Properties will provide go forward asset, property management, and leasing services at this location.
About Anchor Health Properties
Anchor Health Properties is a national, full-service healthcare real estate development, management, leasing, and investment serving investors and health systems. Anchor takes a strategic approach to navigating the extremely competitive healthcare marketplace, considering multiple angles, such as retail drivers, customer experience, branding and efficiency of the project. We develop and manage projects across the United States that respond to the new landscape of employed physicians, team-based care, the need to optimize assets and reduce duplication, and the integration of care and technology. Anchor manages and leases seven million square feet of medical office space, inclusive of numerous projects under construction. Anchor maintains multiple offices nationwide and features more than 80 professionals in its ranks. Over the past five years, Anchor principals have acquired and/or developed more than $3 billion of medical real estate across the country. Healthcare today calls not only for new and more efficient ways of delivering outpatient services, but also a different kind of healthcare development and management company. For more information, please visit: www.anchorhealthproperties.com.