A Calabasas real estate investment firm has bought a 75,000-square-foot medical office building in Tarzana for $30 million.
Agora Realty & Management picked up the three-story commercial building at 5525 Etiwanda Avenue, the San Fernando Valley Business Journal reported. The seller was not disclosed.
The off-market office deal came out to $400 per square foot.
The 36-year-old medical complex, located south of the 101 Freeway and around the corner from Providence Cedars-Sinai Tarzana Medical Center, is 90 percent leased. Tenants include Providence Healthcare Systems, Cedars-Sinai Medical Care and Unilab.
Agora aims to revamp the outside and interior of the property, it said. An interior renovation will include new elevators, corridor finishes, lighting and expanded lobbies, with solar panels added to reduce operating costs.
“The building is strategically located next to the new Providence Cedars-Sinai Tarzana healthcare campus set to open April of 2023, with access directly into the hospital,” Cary Lefton, CEO of Agora Realty, said in a statement.
He said the medical office purchase fits into a company plan to build its commercial portfolio by adding healthcare properties to its grocery-anchored shopping centers.
Agora owns more than 2 million square feet of commercial space in California, Washington, Colorado and Hawaii, with 330,000 square feet under construction in Nevada.
In a similar office deal in the north Los Angeles market, a 38,800-square-foot medical building in Santa Clarita sold for $11.3 million, according to the Business Journal. The sale of the two-story building at 23206 Lyons Avenue came out to $291 per square foot.
— Dana Bartholomew
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