(EDITOR’S NOTE: According to a source with knowledge of the transaction, the property sold for $125 million, or approximately $853 per square foot.)
NEWPORT BEACH, Calif. – JLL Capital Markets announced today that it has facilitated the sale of Newport Lido Medical Center, a 146,510-square-foot, two-building medical office complex in Newport Beach, California.
JLL marketed the property on behalf of an undisclosed seller. Lionstone Investments acquired the property in an all-cash transaction.
Located at 351 and 361 Hospital Rd., Newport Lido Medical Center is situated in the world-renowned medical submarket of Newport Beach and is positioned on the campus of 434-bed, Hoag Hospital Newport Beach. The hospital is consistently ranked by U.S. News & World Report as the best hospital in Orange County and one of the 10 best hospitals in California.
The two-building medical office complex is 100% occupied by a diverse mix of healthcare tenants providing stable and predictable cash flow. The property is anchored by Hoag Hospital Newport Beach Surgery Center and Prime Surgical Center.
The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Andrew Milne and Evan Kovac, Managing Director John Chun and Director Matt DiCesare, with support from Niema Beglari, Trent Jemmett and Chad Prescher. Senior Director Blake Bokosky and Director Mark DeGiorgio of JLL’s Orange County office provided local expertise. Additionally, Managing Director Monica Enes and Vice President Kellie Hill of JLL’s Healthcare Brokerage team provided local healthcare expertise.
“Newport Lido Medical Center represents one of the most significant sale transactions in the history of the medical office sector,” said Kovac. “There are few, if any, single-property medical office sales that have occurred in the sector’s history that rival the profile and quality characteristics embodied in Newport Lido Medical Center, including the irreplaceable location and extraordinary demographics within Newport Beach, on-campus positioning at one of the top medical centers in the country and mix of many of the top tenants and physicians in the world, among other compelling features.”
“Not surprisingly, we received unprecedented investment demand from a wide range of investor profiles from institutional to ultra-high net worth, which, ultimately, led us to a successful transaction. The buyer is a major institution and a brand-new entrant into the medical office sector,” added Kovac.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Lionstone Investments
Lionstone Investments is a data-analytics driven real estate investment firm that conceptualizes, analyzes, and executes national investment strategies using proprietary algorithms and advanced analytics to understand the changing ways people in America want to live and work — Places for Productive People.®
