SAN RAMON, CALIF. – Meridian, a full-service real estate developer and owner of medical real estate, is pleased to announce that it has closed escrow on the sale of its 12,754-square-foot dialysis clinic in Oakland, California. The purchase price was $15.7 million, representing a price of $1,230+-per-square-foot or a cap rate of 5.1 percent. This is Meridian’s fifth transaction in 2018, having acquired four new buildings earlier this year and selling its 104,000-square-foot multi-tenant office building in Brisbane, California in June.
The outpatient dialysis clinic is located at 4242 Broadway in Alameda County, in the North Oakland neighborhood in a busy corridor near Kaiser Permanente and Sutter Hospitals on Pill Hill. The site is also positioned within proximity to the MacArthur BART station, Interstate 580 freeway, Highway 24 and adjacent to a variety of retail services. In 2013, Meridian acquired four lots to create a 19,600-square-foot parcel for ground-up construction of the new, state-of-the-art outpatient healthcare clinic.
According to Meridian’s CEO John Pollock, “Having a visible outpatient facility that also provides easy access and convenience for patients and staff has been a growing trend for systems and healthcare providers. Patients often have difficulty navigating the large and often confusing hospital campuses, entrances and large parking garages. It is all about the patient experience. Meridian has seen this trend over the past few years given the cost advantage and convenience factor of providing services in an outpatient setting as opposed to a higher acuity, higher cost hospital.”
Senior Vice President Mike Conn adds, “Given that this requirement was in an extremely tight urban infill market, paired with the attractive Oakland market in recent years, this was a difficult type of site to locate. With a little flexibility regarding development style, we were able to deliver a desirable building in a perfect location.”
The site required Meridian to vacate and demolish three different buildings while maintaining the structural integrity of a large retaining wall built into the rear of the buildings. “Through a coordinated team effort with our client, vendors, and the City, we were able to construct the OSHPD 3 clinic in just under 10 months,” Conn said. The clinic was completed in September of 2017.
Since its inception in 1999, Meridian has developed over 15 dialysis clinics. “Kidney failure, also known as end-stage renal disease, is a fatal condition unless a kidney transplant is available, or a patient undergoes dialysis, in which a machine filters toxins and fluids from the blood outside the body. In-center dialysis patients are treated approximately four hours a day, three times a week. There is a tremendous need to bring these types of services to the communities where patients live, and we are committed to doing so for our client.”
Chris Sheldon of Cushman and Wakefield, based in the firm’s San Francisco office, represented Meridian in the transaction. The buyer was a Fremont-based family office in a 1031 exchange who was looking to invest in an iconic location that gave them access to the healthcare market. The buyer was represented by Bay Area-based The Kase Group.
San Ramon, California-based Meridian is a full-service real estate developer that has completed over one million square feet of innovative and integrated commercial office space, primarily medical, since its inception in 1999. Meridian’s services are broad in scope, but meticulous in detail — from site evaluation and land acquisition to entitlement and planning to construction and management. Meridian is a division of Marcus & Millichap Company. For more information, see www.mpcca.com.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.