CBRE Facilitated $12 Million Sale of Coastal Medical Building

CBRE recently negotiated the sale of 1300 Avenida Vista Hermosa, a 27,535-sq.-ft.-medical office building in San Clemente, California, at $436 per sq. ft., or a 6.93% capitalization rate. A Southern California-based high-net individual purchased the property.

Gary Stache, Anthony DeLorenzo, Sammy Cemo, Bryan Johnson and Nick Williams of CBRE's Investment Properties represented a private seller in the transaction.

“The sale of this property was a unique opportunity to acquire a Class A medical office building in one of the safest real estate markets in the country,” said Mr. Stache, vice chairman at CBRE.

The two-story building, built in 2002, is situated on 1.66 acres on the southwest corner of Avenida Vista Hermosa and Avenida Pico. The building is 92% occupied, with seven medical tenants, including Children's Hospital of Orange County and Camino Health Center.

“The asset drew strong demand from investors, having received multiple strong offers within the first week of marketing. The buyer closed within 45 days of being awarded the property,” added Mr. Johnson, director at CBRE.

According to CBRE Research, the San Clemente medical office market totals 20 buildings combined for 265,000-sq.-ft., with no new medical office development planned and a vacancy of around 7%. In the second quarter of this year, the medical office space in San Clemente experienced more than 26,000 sq. ft. of positive absorption, the highest number since 2002.