By Meghan Hall
Once considered a niche asset class, medical office buildings are now coming into their own and are attracting interest from major investors. In a recent deal that highlights this trend, local firm Sand Hill Property Company has sold a Los Gatos medical office building to a joint venture of The Carlyle Group and Anchor Health Properties for $52,750,000, according to public documents.
Located at 15400 Los Gatos Blvd., the asset is known as Los Gatos Center and is currently occupied by Sutter Health. The building totals 40,000 square feet and sits on just about two acres, according to Sand Hill’s website. Sand Hill originally developed the property and specifically customized the asset for Sutter Health’s use. Sand Hill spent $26 million to develop the asset, while Sutter Health spent another $20 million on tenant improvements.
The property is not far from Good Samaritan’s hospital and Mission Oaks Campus, and is close to a shopping center anchored by an Xtreme Martial Arts and Fitness Center, McDonald’s, and other shops. Kaiser Permanente’s Campbell medical offices and El Camino Hospital Los Gatos are also not far away.
The Carlyle Group is an American multinational private equity and alternative asset management firm. The company currently has $293 billion in assets, according to the company’s website.
Established in 1985, Anchor Health Properties is also a major player in the field, with a goal of “pursuing better healthcare through real estate solutions.” In 2021, the company reached $2 billion in healthcare real estate investments, and three million square feet of healthcare properties developed.