Pan-Med Enterprises Buys Fee Simple Interest in Medical Office Building in San Francisco for $44.5MM

San Francisco, CBRE, Pacific Professional Building, Pan-Med Enterprises

SAN FRANCISCO –– CBRE announced the acquisition of the fee simple interest of the Pacific Professional Building, a 132,000 sq. ft. medical office building, on behalf of Pan-Med Enterprises, a collection of doctors who occupy and operate their practices at the Property.

Mike Taquino, Kyle Kovac,  Alec Haley, and Giancarlo Sangiacomo of CBRE Capital Markets represented the buyer in purchasing the underlying land out of a ground lease. Mike Walker and Brad Zampa of CBRE’s Debt & Structured Finance team in San Francisco secured the $44.5 million, 10-year, fixed-rate, non-recourse loan to finance the acquisition of the fee simple interest and repayment of the existing leasehold loan from a middle-market East Coast bank that is looking for exposure to quality real estate lending opportunities in select West Coast markets.

“The medical office sector has remained robust despite market headwinds, fueled by the ongoing need for state-of-the-art medical facilities and delivery of essential services. The Pacific Professional is well-positioned for growth, given its proximity to world-class medical and life science institutions and various medical services. As a result, we were able to find competitive solutions for our client despite heightened sensitivities from investors and lenders, and are thrilled with the outcome,” said Mike Walker, Executive Vice President of CBRE.

Located at 2100 Webster Street in California Pacific Medical Center’s Pacific Heights campus, the Pacific Professional Building is a five-story medical office with an outpatient radiology lab, testing labs, pharmacy, and health resource center. The building is 97 percent leased and completed renovations in 2021, bringing it to a Class A Energy Star rating.

Medical office availability in San Francisco remains low, with nearly all medical office buildings fully leased. 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

West Coast Commercial Real Estate News