A medical office property at 500 E. Olive Ave. in Burbank has been sold to Rediger Investment Corp., a Burbank-based investment firm, for $16,050,000, equating to approximately $334 per square foot. The transaction, which closed on November 26, 2024, marks the first time the property has changed ownership in 25 years.
When The Registry covered the property coming on the market in May of 2024, the 48,000-square-foot, 8-story property was 95 percent occupied with 33 tenants; dental professionals occupied roughly 45 percent of the space. At the time the sale closed, the occupancy dropped slightly to 90 percent, according to CBRE. Many of these tenants have been in the building for over 20 years, reflecting the property’s strong tenant retention. The building generated a net operating income of $1,145,967 when it was marketed, with projections estimating this figure at $1,445,172 by year three.
“The opportunity to purchase an outpatient medical building in a fundamentally strong market like Downtown Burbank is rare,” said Shaffer, Senior Vice President at CBRE. “Burbank is one of the top medical office markets in metro Los Angeles, and this property stands out for its tenant stability. Dentist offices comprise 45% of the building’s occupancy, with most tenants occupying their space for over 20 years, and some even since the building opened in 1971.”
500 E. Olive stands out in Burbank’s medical office market, which consists of only nine buildings totaling 460,992 square feet. The market boasts a low direct vacancy rate of 5.9 percent, making it one of the best-performing medical office submarkets in the Los Angeles metro area. This property’s pricing allowed it to compete with higher-cost on-campus hospital facilities near Providence Saint Joseph Medical Center.
Located in Burbank’s outpatient medical hub, the property benefits from its proximity to the I-5 freeway, major hospitals, and Downtown Burbank’s vibrant retail and dining amenities. The surrounding area includes a population of 1.5 million within a 20-minute drive time, with an average household income of $118,794 and annual household expenditures totaling $58.8 billion.
CBRE marketed the property with a team led by Mark Shaffer, Gerard Poutier, Dylan Rutigliano, Anthony DeLorenzo, Bryan Johnson, and Nick Williams.
In 2024, the Los Angeles medical office market demonstrated resilience amid broader economic challenges. The sector maintained low vacancy rates and achieved record-high asking rents, driven by the sustained demand for in-person healthcare services, according to a report by Colliers. However, elevated construction costs led to a 44.8 percent decline in new project starts, with completions slightly increasing to 10.8 million square feet from the previous year’s 10.3 million. Investment activity experienced a downturn, with total sales volume decreasing to $7.3 billion, a 62 percent drop from 2022’s $19.1 billion. Despite these headwinds, the outlook remains positive, supported by the growing healthcare needs of an aging population and the anticipated easing of interest rates.
