July 15, 2019 – Cushman & Wakefield announced today they’ve advised on the sale of a 20,230 square foot, single-tenant, net-leased medical office condo for $11.85 million. Mark Avilla with the firm’s San Diego Private Capital Group collaborated with Travis Ives, co-leader of the firm’s U.S. Healthcare Capital Markets Team to represent the seller, Carlsbad-based Newport National Corporation. The team procured the buyer directly, Global Medical REIT of Bethesda, Maryland.
The property is leased to California Cancer Associates For Research & Excellence (cCARE), the largest full-service, private oncology and hematology practice in California. cCARE leases the entire 3rd floor of the 57,333 square foot medical office building known as Nordahl Medical Centre. Located at 838 Nordahl Road in San Marcos, California, the building was originally constructed in 2009 and widely considered one of the highest quality medical office buildings in San Diego County. cCARE provides a variety of services at this location including medical oncology, chemotherapy, radiation oncology, imaging, pharmacy services and clinical trials.
“We sourced a wide range of well-qualified investors for this rare single-tenant medical office listing and created a competitive environment to produce the sale,” said Avilla. “This particular offering had the potential to appeal to a variety of different buyer profiles, which is why the collaboration between our Private Capital Group and Healthcare Capital Markets teams was the right approach.”
Ives added that “Not unlike most markets around the U.S., San Diego’s medical office market has experienced years of consistent positive net absorption which has dropped vacancies and pushed rents to all-time highs. Cap rates for quality medical office investments have compressed during that same time, leading to record setting prices on a per square foot basis. The price paid on this transaction ($586 PSF) ranks among the highest ever paid for a medical office condo investment in San Diego County. That might have scared some buyers off, but Global recognized that with over $215 per square foot recently spent on tenant improvements and very little competing product in the area, it seems highly probable cCARE will remain a tenant at the project for many years to come.”
Scott Brusseau, President of Newport National Corporation, said, “This was a very smooth transaction process and we were pleased with the outcome on this condo sale.” He added, “We enjoyed a great experience collaborating closely with the Cushman & Wakefield team who consistently exceeded our expectations. We’re also thankful to have worked with a respected group like Global Medical REIT on this sale.”