July 29, 2019— Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, has successfully directed the $13.5 million acquisition of Forest Surgery Center, a state-of-the-art medical office facility in San Jose, California. Adam Levin, Executive Managing Director and Robert Johnston, Senior Managing Director of Levin Johnston represented the buyer, a private investor, in the transaction.
The acquisition was part of a successful 1031 exchange through which Levin Johnston identified an opportunity for the buyer to transition from long-term ownership in a management-intensive multifamily property in Redwood City into a stable, higher-yielding medical office property, according to Johnston.
“This acquisition demonstrates our firm’s ability to go beyond a transactional mindset and serve as wealth and investment advisors for our clients,” Johnston explains. “By remaining attuned to the market and to our client’s needs, we were able to recognize the opportunity for the client to diversify into another asset class to reduce management responsibilities while significantly increasing cash flow. This trade also gives the buyer a stable asset in a superior location that is posed to perform extremely well for years to come.”
Levin explains, “San Jose is widely recognized as ‘The Capital of Silicon Valley.’ As the market’s economic growth continues, the buyer will benefit from continued tenant demand. All doctors in the building signed new five- to 10-year leases at the close of escrow. Additionally, the medical office is situated in a premier location within a medical hub directly across from O’Connor Hospital, which was recently acquired by Santa Clara County.”
Forest Surgery Center is located at 2110 Forest Avenue, in close proximity to Santa Clara Valley Medical Center as well as a wide variety of recreational, retail and entertainment options. The medical office is also in close proximity to I-880 and I-280, providing direct access to all major Bay Area destinations.
The 1031 property exchange began with the $10 million sale of a 33-unit multifamily community in Redwood City, and culminated with this new acquisition.
Levin Johnston has completed over $300 million in sales in 2019 to date, demonstrating continued health in the commercial real estate market in this region. For more information about the firm’s $100 million in available properties.