HFF closes sale and arranges joint venture for development of 104,500 SF Mission Viejo Medical Center in Southern California

                         Mission Viejo Medical Center, Mission Viejo, CA

SAN DIEGO, CA – Jan. 17, 2018 – HFF announces that it has closed the partial interest forward sale and arranged the full capital stack of joint venture equity and financing for the construction of the ground up development of Mission Viejo Medical Center, a fully-approved, 104,500-square-foot, Class A medical office building situated on the southeast parking field of the Shops at Mission Viejo, a Simon-owned super regional mall, and just steps from the main entrance of Providence St. Joseph’s 523-bed Mission Hospital in Mission Viejo, California. 

Aldon Cole

The HFF team served as an advisor to the seller, NCA Real Estate, a Newport Beach, California-based developer, in order to explore strategic options including construction financing, joint venture equity partnerships and a forward sale. 

Ultimately, Welltower, Inc. (NYSE: HCN) agreed to purchase the developer’s interest and also provide equity and debt capital to the new partnership.

“The HFF team has been a valuable advisor to NCA as the project has evolved over the past several years, and the insights and advice they provided were critical in the successful capitalization of the project,” said David Zak, managing partner of NCA.

Mission Viejo Medical Center (“MVMC”) was conceptualized by NCA more than eight years ago when it commenced negotiations to acquire the mall site.  NCA recognized the synergies between retail and medical office projects and focused on an underutilized part of the mall. 

Olga Walsh

It is anticipated that the new project will bring substantial economic benefit to the mall from the patients and employees that will be brought to the mall each day and the mall will serve as a strong amenity to the project. 

NCA’s development team, led by Dana Whitmer, overcame numerous obstacles to close on the site and gain the necessary entitlements to construct the project, and the finished product will be well worth the effort.

Evan Kovac

MVMC will be the first on-campus medical office building constructed in South Orange County in over 10 years.  Upon completion in 2019, MVMC will be completely occupied by Mission Hospital and will include a comprehensive cancer center, medical imaging suite, endoscopy center and other significant outpatient services. 

 Designed from the ground up to be a best-in-class facility, MVMC is at the front door of the region’s pre-eminent hospital and ideally situated to serve a rapidly growing population. 

The building’s functional design was guided by HGA Architects and Engineers and emphasizes flexibility and efficiency.  The project is being constructed by Snyder Langston who has been an invaluable resource to NCA throughout the design and engineering process.

The HFF medical office investment advisory team representing the seller consisted of managing director Evan Kovac, director Andrew Milne and senior associate Trent Jemmett. 

The HFF debt placement team included senior director Zach Koucos, senior associate Olga Walsh and senior managing director Aldon Cole. 

“NCA and Welltower worked diligently throughout the complicated process, often under compressed timeframes, to see this deal come to fruition.  Once completed, MVMC will be one of the pre-eminent on-campus MOBs in the United States,” Kovac said.

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

For more information on this transaction, please contact:

KRISTEN MURPHY
HFF Director, Public Relations
(617) 338-0990
krmurphy@hfflp.com