A Sacramento hospital chain has sold two medical office buildings in Sunnyvale for $27 million.
Sutter Health sold the two properties with a total 59,300 square feet at 130 and 139 Kifer Court, the Silicon Valley Business Journal reported. The buyer was R1 RCM, a financial management firm based in Utah.
The deal for the Class B buildings on 3.4 acres, by the Caltrain tracks near South Wolfe Road, came out to $464 per square foot.
Both offices, built of equal size in 1980, were occupied by Sutter Health/Palo Alto Medical Foundation, according to a Loopnet real estate listing. Sutter bought the properties in 2004.
R1 RCM, based in Salt Lake City, mainly services hospitals and physician groups, according to its website.
Sutter Health, a nonprofit founded a century ago in response to the 1918 flu pandemic, runs 24 acute care hospitals and more than 200 health clinics in Northern California.
The organization also owns California Pacific Medical Center and has listed its former San Francisco campus in Presidio Heights for sale without a list price, abandoning years-long plans to build hundreds of homes.
Sunnyvale’s Class A office market has an availability rate of 3.8 percent, with rents averaging $7.37 a square foot, according to a new Colliers report. For Class B space, the availability rate is 20.4 percent, with rents averaging $4.89 a square foot.
More companies are increasing their office footprints by at least 50,000 square feet in Silicon Valley and the Peninsula than elsewhere in the Bay Area, according to a 2022 halftime report by The Real Deal. Ten businesses in both regions expanded by a net 1.6 million square feet.
– Dana Bartholomew
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