Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 62,969-square-foot single-tenant medical clinic located at 420 West Rowland Street in Covina, California. The facility was purchased by IRA Capital, LLC based in Irvine, California, for $39.9 million. The seller, Genesis KC Development, LLC, is a wholly owned subsidiary of DaVita, Inc. based out of Denver, Colorado. Scott Briggs and Kelly Largent of Stan Johnson Company represented both parties in the transaction.
The two-story medical office property sits on 4.95 acres and was originally built in 1962 and 1989 to the exact specifications of the tenant. The property was recently renovated and modernized by the seller with a substantial investment. “This was a fun project to have had the pleasure to work on,” said Briggs, Director in Stan Johnson Company’s Tulsa, Oklahoma office. “The seller and its team, working with California-based AGI General Contracting, delivered high-quality results early and under budget on a challenging renovation-to-suit for a very busy, multi-specialty practice clinic that remained in operation during the project. The work quality was superb, and I’m confident the buyer and the tenant are thrilled with the outcome.”
Magan Medical Clinic is a multi-specialty clinic with approximately 22 specialties and 50 providers that serve more than 22,000 patients annually. The tenant is a wholly owned subsidiary of Optum and UnitedHealth Group, Inc. (S&P: A-). Magan was founded in 1919 by Dr. W.P. Magan, and the clinic recently celebrated its 100-year anniversary, including 52 of those years at the current location. Magan committed to a long-term lease at this location in conjunction with the recent renovations.
According to Amer Kasm, Co-Founder and Partner at IRA Capital, “the acquisition provided a unique opportunity to add another core Southern California asset to our growing healthcare portfolio. The clinic’s diverse mix of healthcare services and long history of serving the community, along with UnitedHealth Group/Optum’s recent acquisition and backing of the long-term lease, were among the key factors in our investment decision.”
IRA Capital has been one of the largest buyers of healthcare real estate in the country, having closed the acquisition of approximately $150.0 million of transactions in the past 30 days, with another $150.0 million expected to close before the end of the quarter.
About IRA Capital, LLC:
IRA Capital “IRA” is a private equity firm founded in 2010 that invests capital for its own account and on behalf of its co-investment partners, which include pension funds, institutions, family offices, and individuals. IRA primarily invests in commercial real estate assets throughout the United States, with an overweight concentration within the medical/healthcare real estate sector. Headquartered in Irvine, California, IRA has acquired over six million square feet of property across 25 states, valued in excess of $2 billion. IRA also invests in other asset classes within venture capital and private equity, and its portfolio companies span various industry segments including technology, consumer/retail, healthcare, entertainment/media, and hedge funds/financial services. IRA’s mission is to first and foremost preserve investor capital, and to deliver attractive risk-adjusted returns while making a positive impact on the communities and companies in which we invest. IRA has established itself as a leader within its respective industries and markets, with deep relationships and a strong track of profitability. The principals of the company have diverse backgrounds with more than 100 years of combined experience, having collectively executed on transactions totaling more than $10 billion.