SAN RAMON, Calif. – Meridian, a full-service real estate developer and owner of medical real estate, is pleased to announce that the company has closed escrow on the sale of its 13,600-square-foot dialysis clinic in Stockton, California. The purchase price was $7.5 million, representing a cap rate of 5.15%.
The outpatient clinic is located at 7500 West Lane and is positioned directly across the street from Kaiser Permanente’s Stockton medical offices and within a five-minute walk to restaurants and retail amenities including Costco.
In April 2018, Meridian acquired a 7,500-square-foot building sitting on 2.06-acres to build the Stockton dialysis clinic. At the time, the deal represented the 16th outpatient clinic that Meridian had developed over the last five years. “We persevered for over 15 months to bring this deal to a close because of our confidence that this would be an ideal location to serve patients in the community. Ultimately, it was our ability to structure a deal that worked well for us as well as the existing landowner, which led to the successful transaction,” said Mike Conn, Meridian Executive Vice President.
“In order to build the larger, state-of-the-art facility, we needed to demolish the outdated building,” Conn continued. “Through a coordinated team effort with our client, design and construction team and the city, we were able to construct the OSHPD 3 clinic turn-key in less than 10 months.” Meridian’s project architect was Harriman Kinyon Architects of Walnut Creek, California. Kier and Wright of Livermore, California was the civil engineer and the general contractor was H2 Builders of Napa, California.
According to Conn, “Kidney failure, also known as end-stage renal disease (ESRD), is a fatal condition unless the patient undergoes dialysis, in which a machine filters toxins and fluids from the blood outside the body, or unless they receive a kidney transplant. In-center dialysis patients are treated approximately four hours a day, three times a week, for the remainder of their lives. There is a tremendous need to bring these types of services into the communities where patients live, and we are thrilled that we were able to deliver this new, leading-edge facility to the Stockton community.”
The buyer was a private investor from Northern California and was represented by Paul Beckwith of Cushman & Wakefield in Oakland, California in the sale. Meridian was represented by Chris Sheldon of Cushman & Wakefield in San Francisco in the sale.
“This transaction was unique in that it took 17 days from receipt of the initial letter of intent to closing escrow. Our hats off to our asset management team, in-house legal team and our lender, Bank of the West, who worked quickly to pull together the due diligence and required closing documentation,” said Conn.
Meridian recently purchased a 53,500-square-foot building in Orange County, California for a medical office conversion and currently owns and manages healthcare properties throughout the western United States. According to Conn, Meridian is aggressively pursuing acquisitions and developments throughout California, the Southwest and the Pacific Northwest.
Founded in 1999, San Ramon, California-based Meridian is a full-service real estate developer and investor specializing in high-quality, brand-enhancing developments with distinctive expertise in healthcare real estate. Meridian’s services are broad in scope, but meticulous in detail — from site evaluation and land acquisition to entitlement and planning to construction and management. Meridian has offices in Phoenix, Northern California, Southern California and Seattle.