Northern California’s medical office market continues its appeal as full service real estate developer and owner in the medical office segment, Meridian Property Company, recently announced that it had closed escrow on a property in Rohnert Park, Calif. The property offers great opportunity in terms of a new leasing agreement, as a large amount of space was recently vacated at the site. The new owner will look to bring in a new tenant, following a number of improvements that Meridian already has planned for the property. The asset was sold for an undisclosed amount by a partnership between Petaluma, Calif.-based PB&J Acquisitions, and an institutional investor who acquired the property back in 2012.
Located on a 4.79-acre site at 5900 State Farm Drive, the asset offers tenants a total of 69,000 square feet of medical office space. Kaiser Permanente is the only current tenant at the property, occupying about 50 percent of the available space. The health care provider has occupied the first floor of the property for over a decade, having originally moved in in 2003. The top floor could accommodate a single tenant that requires around 35,000 square feet of space, or up to four different leases, for around 7,500 square feet each, according to the COO of Meridian, John Pollock.
According to a press statement announcing the property acquisition, the area that the medical office property serves is currently well below the national average in terms of doctors per 1000 residences, currently at 2.4, with Rohnert Park only having an average of 1.29 doctors. The area surrounding Rohnert Park totals a population of approximately 342,000, meaning that there is quite the room to grow the region’s number of practices and medical staff.
The facility offers large plate floors, with assets such as this being the current target of the new owner. Meridian will now look to add value to the property in order to boost its appeal with prospective tenants. Lobby upgrades are already planned, with further improvements set to be made, catering to the tenant that will ink a deal at 5900 State Farm Drive. Meridian Property Company, a division of Marcus & Millichap Company, recently sold one of its medical office properties in Palmdale, Calif. The building was part of its Sierra Pelona Medical Center campus. That property will now be used as the home of a local family practice.