Ten-X (formerly Auction.com) will offer the newly built San Juan Medical Center for sale in a managed bid event scheduled for March 9. The online event will take place on Ten-X’s Auction.com platform in a custom, two-step process typically reserved for higher-priced properties, allowing interested bidders to first qualify for a "short list" by submitting a sealed indicative bid prior to the live auction. Indicative offers are due Feb. 19.
The 40,268-square-foot Class-A medical office property is located at 31001 Rancho Viejo Road on a 4.79 acre site in San Juan Capistrano, Calif. It is 100-percent leased with two brand new, 15-year triple net (NNN) leases with investment grade tenants occupying more than 90-percent of the project. The property was built in June 2015 and is being sold by its owner/developer as part of an original investment strategy.
“San Juan Medical Center is a best-in-class property that represents the type of high-quality assets investors around the globe have direct access to on our proven Ten-X platform,” said Ten-X Commercial Real Estate Division General Manager Gordon Smith. “Offering this property as a managed bid enables us to ensure that only the most qualified buyers will bid on the property, while also expediting the transaction process. From the opening of the marketing period to the close of escrow, we expect this asset to complete the entire sales process in approximately 90 days.”
The two-story property was designed to meet the new demands of the Affordable Care Act. It features an emergency center within the building, as well as an abundance of surface parking. Its location includes proximity to a full-service retail center, golf course, country club and easy access to Interstate Highway 5.
Medical office buildings (MOBs) are on the rise as solid investments today as an aging population, increasing numbers of newly insured patients, and changing lifestyles encourage healthcare systems to meet new, heightened demands. Medical services are increasingly branching out into the communities themselves instead of being just a centralized building located at or nearby a hospital. With demand on the rise and supply low, newly built out-patient facilities that meet such standards are highly sought after today.
“As older medical office buildings become more obsolete, properties like the San Juan Medical Center represent a significant shift occurring in the healthcare sector, as well as a viable opportunity for investors,” Smith said. “Its prime Orange County location, existing triple-net leases and status as a newly-built asset with no upcoming capital costs makes San Juan Medical Center a very attractive investment.”