Vukota Real Estate Acquires Valley Medical Plaza Portfolio Located in Van Nuys, California
19 September, 2017
LOS ANGELES, CA, September 19, 2017 – Vukota Real Estate, LLC today announced the acquisition of the Valley Medical Plaza Portfolio, consisting of two Class A medical office buildings located at 14600 Sherman Way and 14624 Sherman Way in Van Nuys, California. The portfolio is well occupied and proximate to quality residential and retail amenities as well as five hospitals including Valley Presbyterian Hospital (350 beds), Northridge Hospital Medical Center (409 beds), Providence Holy Cross Medical Center (377 beds), Mission Community Hospital (145 beds) and Providence Tarzana Medical Center (249 beds). Vukota Real Estate closed the purchase in a joint venture with Harrison Street Real Estate Capital.
The two medical office buildings consist of approximately 103,000 rentable square feet and are situated on approximately 1.92 acres. The portfolio features a strong and diversified mix of large-scale medical practice tenants with a broad range of varied medical specialties. Tenants at the property range in practice specialization from primary care and internal medicine to ophthalmology, cardiology, mental health services, orthopedics, pain management and physical therapy, dialysis, laboratory and dental practices.
Located near the 101 & 405 intersection, the Valley Medical Plaza Portfolio is situated in a high-density residential area and commercial corridor with over 750,000 people living within five miles. The nearby Sherman Way and Van Nuys Boulevard intersection boasts an average daily traffic volume of approximately 43,000 vehicles. In addition to surface parking, the project is served by a 610 space six-story parking structure.
The market has experienced rising rates and the property presents a well-conceived and well-operated prospect for large floor plate university, foundation and/or corporate providers. The latest Emerging Trend study conducted by PricewaterhouseCoopers and the Urban Land Institute shows medical office as a direct beneficiary of a steadily aging population. Their study concludes that demand will grow for more physicians, therapist, and hospital-related facilities, with many electing to shift resources to secondary ambulatory facilities in getaway cities and regions such as Greater Los Angeles.