By Eric Althoff
IRVINE, Calif.—Real estate development firm Meridian of San Ramon, Calif., has joined with investment firm Harrison Street of Chicago to repurpose a 110,400-square-foot Class A office building in Orange County into a medical office complex. The building complex is bordered by Interstates 405 and 5, state route 133, and also abuts the nearby Irvine Spectrum.
The office complex was first built in 1999 and has been operating under the name Pacifica Court since its opening. The buyers announced that its new name, at the end of the refurbishment, will be Pacifica Medical Plaza.
Meridian recently closed escrow on the sale of the property, which is located on a five-acre parcel of land at 114 Pacifica Court in Irvine. The plans of Meridian and Harrison Street for the property entail future investments jointly floated by the two firms.
Meridian Vice President of acquisitions R.J. Sommerdyke said that the building’s location is central to several area transportation hubs, including Southern California’s Metrolink station in Irvine and a short drive to John Wayne Airport (SNA).
“Future tenants and their patients will have easy access to the numerous amenities at the adjacent Irvine Spectrum Center, and will also be in close proximity to two of Orange County’s most exciting developments, the Orange County Great Park and the recently announced $1 billion City of Hope Cancer Center,” Sommerdyke said, adding that the building was sold with 60 percent of its space already occupied.
He added: “In addition to being one of the fastest-growing cities in the state, Irvine has one of the tightest medical office markets in Southern California, with extremely high barriers to entry and very strong demographics.”
Mark Burkemper, a senior managing director at Harrison Street, said that the need for modern healthcare facilities and medical office buildings is higher than ever before, especially in Southern California.
“Orange County is an attractive market backed by strong demographic trends, and we are excited to partner with Meridian to continue our longstanding commitment to providing access to modern medical centers,” Burkemper said.
CBRE represented the seller in the transaction, which marks the third such joint collaboration purchase for Meridian and Harrison Street.
“The building has great freeway visibility with large, flexible floor plates that can accommodate a variety of uses, such as surgery centers, imaging clinics, etc.,” Sommerdyke said of the building’s possibilities, adding that Meridian spent a year obtaining entitlements to convert the property for 100 percent medical office use.
Future plans at the site include a three-level parking garage and renovations of the common areas for medical use, Sommerdyke said, with construction due to be finished sometime in the third quarter of 2021.
Added Meridian CEO John Pollock: “The conversion of this building to medical office [space] will allow providers to serve a broad range of patients in an environment that can provide the best care available.”