By Lilly Riddle
A new investment opportunity has emerged in the Los Angeles commercial real estate market with the listing of a fully leased medical office building located at 3331 N. Broadway and 2409-2411 N. Thomas in Lincoln Heights. The property, constructed in 2019, boasts a total of 51,722 square feet of leasable space across three stories and sits on a 1.11-acre plot of land. The asking price for this asset is $34.2 million according to an offering brochure for the property from CBRE.
The MOB is currently fully occupied by three well-established tenants, providing a stable income stream and an in-place cap rate of 6.3 percent. The anchor tenant, the Los Angeles County Department of Mental Health, occupies a significant portion of the building and holds a 15-year lease with a firm term through October 2034, according to the brochure. LACDMH is the largest county-operated mental health department in the United States, with a large network of service locations and an annual budget approaching $3 billion, according to the offering memorandum. It is currently owned by an entity based in West Hollywood.
The remaining tenants, Western Dental & Orthodontics and Pinner Construction, further solidify the property’s income stability, according to the offering brochure. Western Dental is a national retailer with more than 560 offices across 20 states, while Pinner Construction is the firm overseeing the nearby $233 million Lincoln High School modernization project.
The property itself is purpose-built and designed to accommodate the specific needs of healthcare providers. It features 223 on-site parking stalls, two freight-sized elevators, high ceilings and prominent signage opportunities for tenants. Its location on North Broadway, a major commercial corridor with an estimated 30,000 cars passing by daily, ensures maximum visibility for both medical and retail businesses.
Located in the heart of Downtown Los Angeles, the property benefits from the area’s robust medical market, which currently boasts the lowest vacancy rate in the Greater Los Angeles region at 5.2 percent. This strong demand for medical space is fueled by the growing population and increasing need for healthcare services. Additionally, the property enjoys regional access via major freeways, making it accessible to both patients and staff from throughout the greater Los Angeles area.
The property also comes with an assumable financing option, with a $19 million loan balance at 3.9 percent interest-only that matures at the end of July 2029. This financing structure offers investors the potential for a 9 percent leveraged cash-on-cash return in the first year, further enhancing the property’s investment appeal.
Mark Shaffer, Anthony DeLorenzo, Todd Tydlaska, Dylan Rutigliano, Mike Longo, Bryan Johnson and Nick Williams of CBRE are leading the marketing efforts for this property.
