Redwood City, January 24, 2019 – The former San Jose Dental Surgery Center, a ±7,486 RSF medical office, sold within 3% of its list price and received multiple offers. The seller in the transaction, Alum Rock Corners, LLC, wanted to sell the NNN lease investment property as they were looking to reposition and deploy their capital into retail properties in Santa Clara County. Their depreciation basis was exhausted; therefore, the seller would have to pay a capital gains tax in order to open a new depreciation basis.
Colliers International Vice President Cory Waxman, the exclusive listing broker on behalf of Alum Rock Corners, LLC commented, “Demand for medical office buildings remain very high as a hedge against an economic downturn. As such, our strategic marketing campaign produced multiple offers closing within a 3% range of list price.”
The buyer, ADHREI, LLC, sold a multifamily property in Cupertino and then purchased the medical office at 1998 Alum Rock Avenue via a 1031 Exchange to increase their overall yield to a capitalization rate of 6.6%. The transaction outcome was successful for both parties.
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Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world’s most respected institutional real estate investors.
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