San Ramon Medical Office Asset Sells for $23MM

San Francisco Independent Holdings San Ramon TRI Commercial Burlingame 100 Park Place medical office building East Bay real estate

By Jon Peterson

A private family investor that goes by the name of Independent Holdings has acquired the 53,000 square foot 100 Park Place medical office building in San Ramon for $23 million, or $433 per square foot.

[contextly_sidebar id=”BZB7IA9qYPNitbPgJZawSNgJ1ZmCBADj”]“The owner of this property was seeking a 1031 exchange and was looking for a property that was a little less management intensive than the asset it sold early this year. The property fits the bill as it represents more of a core medical office asset,” says Anton Qiu, a principal in the San Francisco office for TRI Commercial. He represented the buyer on the two properties and the seller of the property in San Ramon.

100 Park Place is a 100 percent leased property. All of the tenants in the property are doctors or other medical related businesses. The average leases in the property have nine to 10 years left to run. The seller of the property was a group of doctors, with many of them being tenants in the building. The selling entity did put some significant capital into the property for improvements over the past few years.

The cap rate on the sale was 6.45 percent. This return is based on the property’s current net operating income. The asset was sold as an off-market transaction. The land area for the building is 2.8 acres.

Independent Holdings had sold in March of this year a 60,000 square foot medical office building located at 1828 El Camino Real in Burlingame. The sales price on this building was $21.5 million, or just over $358 per square foot. The seller had been looking for a 1031 exchange for a similar sized property since it sold this asset.

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