KAS Hollywood, LLC has purchased a five-story medical office building on the campus of Memorial Regional Hospital South in Hollywood for $8.3 million. Built in 1975 at 3700 Washington Street, the 57,815-square-foot property traded for just under $144 per square foot. The building was 80 percent leased at the time of the sale and features newly-installed HVAC units, air intake system, LED lighting and a refurbished chiller system. The sale was completed with a $6.4 million commercial mortgage-backed securities (CMBS) financing from CBRE for a total loan to value of 77 percent.
“With medical office visits projected to increase significantly over the next five years, this is a medical environment characterized by rapid growth and high procedure volumes,” said CBRE’s Scott O’Donnell, Senior Vice President, Investment Properties. “This building is a rare value-add medical office opportunity that benefits from its strategic hospital campus location. The seller acquired this previously distressed asset in 2014, repositioned it and capitalized on the even stronger capital markets environment we have now. Both the buyer and seller were sophisticated enough to work through cross-easement issues to everyone’s satisfaction.”
