Despite the many challenges the nationwide office market has faced since the onstart of the COVID-19 pandemic, the medical office market has continued to perform well. Recent sales highlight this trend.
In one such sale, a 29,609 square foot medical office building in Thousand Oaks’ Westlake Village community was sold for $16.95 million, or $572 per square foot, according to a closing announcement from Marcus & Millichap. Public records show that the property was sold by 3180 Willow Lane LLC, an entity linked to Paragon Real Estate Services.
The property is located at 3180 Willow Lane on nearly two acres of land and was initially built in 1987. Since then, the property has undergone extensive renovations to include contemporary finishes.
The building is currently 97 percent occupied to a number of private primary care and specialty clinical medical tenants. The current weighted lease term is 5.7 years, according to the closing announcement.
The sale was arranged by Marcus & Millichap’s James DeBuiser and Gary Cohen, and a previous listing for the property shows that it was initially offered at $17.5 million. The sale was the highest price per square foot and lowest cap rate at 4.9 percent for medical office buildings in Ventura and Los Angeles counties. Overall, the sales team has sold more than $51 million worth of medical office buildings in the second quarter of the year.
