Medical Development and Investment Growing Profile in San Francisco Bay Area
- Dec 05, 2013
As 2013 draws to a close, developers and investors are scrambling to get their ventures going before the end of Q4, and increased activity is seen in most sectors of the real estate market. The San Francisco Bay Area has seen an escalation in the health care sector with Meridian Property Co. announcing the development of four medical clinics in California, three of which are located near San Francisco. The three facilities are going to be built in Fairfield, Calif., Walnut Creek, Calif. and Modesto, Calif., with the fourth one taking shape in Pomona, Calif. in the L.A. metro area.
The company is constructing health care-oriented properties worth approximately $15.2 million combined, The San Francisco Business Times reports. The facilities will range in size between 8,200 and 12,000 square feet. All four clinics are set to be developed in anticipation of the medical real estate market going up, company officials noted. The properties will have the possibility to be upgraded and are all situated in desirable spots that are set up for growth.
In other medical real estate news, The Silicon Valley Business Journal has announced a medical clinic transaction completed by Dutra Enterprises. The company has acquired a fully-leased facility from PAR Fremont LLC for a fee of $4.55 million, at a rate of $359 per square foot. The clinic in Fremont, Calif. is currently occupied by a single tenant, namely the Veterans Administration.
The news of Meridian’s development pipeline and the recently completed acquisition by Dutra Enterprises marks the rise of the medical clinic sector as one of the underdogs of the industry. A growing amount of health care-oriented properties are now attracting interest from developers and investors, marking a new growth niche in a rebounding industry.