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| Medical Office Building, 3531 Fashion Way, Torrance, CA |
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| John Pollock |
The purchase
price was $7.5 million and Meridian plans to invest an additional $3.6 million
by the time the building is fully leased.
Located at 3531 Fashion Way on a 1.6-acre parcel, the property is directly across the street from Del Amo Fashion Center, one of nation’s largest malls, which has recently completed a $300 million modernization.
“The building was being sold 100 percent vacant,” said R.J. Sommerdyke, Director of Acquisitions at Meridian. “Given the vacancy, building age and location, the property was being marketed as a redevelopment opportunity.
According to Sommerdyke, “The property was built in 1961 and underwent multiple renovations over the years. Despite being well-maintained by the seller, in order to meet the standards of today’s medical users, Meridian will conduct significant renovations and upgrades to the property.
Those
improvements will include an exterior facelift, lobby modernization, the
addition of common area restrooms and a new roof, HVAC systems, landscaping,
and signage as well as parking lot restriping/resurfacing. We expect to
complete all improvements by the third
“This acquisition is a great example of Meridian’s core strengths and the ability to execute on outside-the-box deals,” said Meridian CEO, John Pollock. “Given our comprehensive experience in medical office, our team was able to identify value in a property that was overlooked by many others.”
Pollock continues, “During the escrow period, we were able to overcome a
number of obstacles and worked through complicated title issues.
"Additionally, with our many relationships in the medical and health care industry, we were able to secure a lease with a prominent tenant for over half of the building prior to waiving contingencies.
"Using our own in-house project management team, we will bring this building to today’s high standards.”
This transaction represents Meridian’s fifth acquisition in 2018. In January 2018, Meridian purchased three existing buildings on five parcels totaling 29,000 square feet of land in Downtown Long Beach to build a new, single-story 9,200-square-foot ambulatory, out-patient clinic.
In February,
Meridian acquired a vacant 39,204-square-foot parcel to develop an
11,250-square-foot outpatient clinic in Modesto, California.
In April, Meridian purchased a vacant 39,204-square-foot parcel with plans to build an 11,250-square-foot ambulatory, out-patient facility in Stockton, California.
All three out-patient clinics are expected to be completed in early 2019. In May, Seavest Investment Group, assisted by Meridian, purchased a seven-story, 119,262-square-foot office property in San Francisco.
According to Pollock, Meridian will continue to aggressively pursue value-add medical and new healthcare development opportunities throughout the West Coast.
California-based Meridian is a full-service real estate developer with offices in San Ramon and Newport Beach.
Meridian has specialized in the development of innovative and integrated commercial office, and medical office, since its inception in1999.
Meridian’s services are broad in scope but meticulous in detail -- from site evaluation and land acquisition to entitlement and planning to construction and management.
Located at 3531 Fashion Way on a 1.6-acre parcel, the property is directly across the street from Del Amo Fashion Center, one of nation’s largest malls, which has recently completed a $300 million modernization.
 |
| R.J. Sommerdyke |
The medical office building also benefits from close
proximity to two major hospitals, including the 436-bed Providence Little
Company of Mary Medical Center and the 401-bed Torrance Memorial Medical
Center.
“The building was being sold 100 percent vacant,” said R.J. Sommerdyke, Director of Acquisitions at Meridian. “Given the vacancy, building age and location, the property was being marketed as a redevelopment opportunity.
"The
bidding process was competitive, and the property ultimately sold for what we
believe is land value. The purchase price translated to a compelling price per
square foot for a medical office building at this location.”
 |
| Kristen Bowman |
According to Sommerdyke, “The property was built in 1961 and underwent multiple renovations over the years. Despite being well-maintained by the seller, in order to meet the standards of today’s medical users, Meridian will conduct significant renovations and upgrades to the property.
 |
| Brendan McArthur |
quarter of 2019.”
During escrow, Meridian was able to secure a tenant for roughly half of the building on a long-term lease. At this time, the tenant cannot be disclosed.
 |
| Steve Solomon |
"Additionally, with our many relationships in the medical and health care industry, we were able to secure a lease with a prominent tenant for over half of the building prior to waiving contingencies.
"Using our own in-house project management team, we will bring this building to today’s high standards.”
Brendan McArthur, Steve Solomon, Jeff
Adkinson and Kristen Bowman, from JLL’s Los Angeles office,
represented the seller, Providence Health, in the transaction while Meridian
represented itself.
Continued leasing will be managed by John Scruggs at Newmark Knight Frank.
Continued leasing will be managed by John Scruggs at Newmark Knight Frank.
This transaction represents Meridian’s fifth acquisition in 2018. In January 2018, Meridian purchased three existing buildings on five parcels totaling 29,000 square feet of land in Downtown Long Beach to build a new, single-story 9,200-square-foot ambulatory, out-patient clinic.
 |
| Jeff Adkison |
In April, Meridian purchased a vacant 39,204-square-foot parcel with plans to build an 11,250-square-foot ambulatory, out-patient facility in Stockton, California.
All three out-patient clinics are expected to be completed in early 2019. In May, Seavest Investment Group, assisted by Meridian, purchased a seven-story, 119,262-square-foot office property in San Francisco.
 |
| John E. Scruggs |
According to Pollock, Meridian will continue to aggressively pursue value-add medical and new healthcare development opportunities throughout the West Coast.
California-based Meridian is a full-service real estate developer with offices in San Ramon and Newport Beach.
Meridian has specialized in the development of innovative and integrated commercial office, and medical office, since its inception in1999.
Meridian’s services are broad in scope but meticulous in detail -- from site evaluation and land acquisition to entitlement and planning to construction and management.
CONTACT:
Anne Monaghan
MONAGHAN COMMUNICATIONS, INC.
anne@MonaghanPR.com
830.997.0963
MONAGHAN COMMUNICATIONS, INC.
anne@MonaghanPR.com
830.997.0963
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