New Medical Office Building Coming to California Capital
By Eric Althoff
EL DORADO HILLS, Calif.—The Osborne Group, a subsidiary of the TRI Commercial Real Estate group, has announced plans to construct a ground-up medical office building (MOB) in the Sacramento suburb of El Dorado Hills. The MOB will be located at 8105 Saratoga Way, in a neighborhood called Crescent Ridge Village.
The two-story MOB will entail 33,000 square feet of space over two floors. Specialty care offered will include minor surgery in addition to more run-of-the-mill medical and dental care.
The El Dorado hills market has a median household income of $138,000, and 83 percent of the people in the area have health insurance, making it a healthy market for future growth.
DGA planning architecture interiors, based in the Bay Area community of Mountain View, will be designing the shell of the MOB as well as the common areas; several other architecture firms have been contracted to work on tenant improvements. GP Development Inc. of nearby Roseville will be tending the project as the general contractor.
Robb Osborne, who is a principal at TRI Commercial and the Osborne Group, said that the El Dorado Hills market specifically—and the Sacramento region generally—is especially promising for future healthcare expansion. However, the rate of office space vacancy in the area is remarkably low, hence why new construction for the healthcare MOB was needed. But the economic health of the area makes the MOB even more necessary.
“While the pandemic has challenged and will continue to challenge many asset classes within the commercial real estate industry, medical office is well positioned for growth,” Osborne said in a recent statement. “Maintaining health and wellness has clearly become a focal point for people.
“With the imminent release of a viable and safe COVID-19 vaccine and research showing that medical office investments are highly favored for their long-term leases, stable occupancy and income, and tenant credit quality, we anticipate this sector to continue to prosper.”
The Class A development will be owned by KFG & FOUR Cs LLC. Dr. Kelly Hunt of KFG & FOUR Cs LLC said that his firm will occupy part of the new building, and the rest of it will largely be leased to various other healthcare operators in the area.
“The demand for a quality medical office like 8105 Saratoga Way, which offers exceptional visibility and access for Sacramento and El Dorado Hills commuters, is already strong and demand will likely grow,” Hunt said in a recent statement, adding that the population has increased in the area by 10 percent in less than a decade.
Osbourne added that even though the coronavirus pandemic took a chunk out of many industries, the healthcare construction sector has remained remarkably hale, both as new offices need to be built and existing facilities reconfigured to accommodate the need for maintaining distancing between patients and caregivers.
“In a year marked by a pandemic and financial uncertainty for many, the Osborne Group has performed extremely well, completing 36 lease transactions and 20 sale transactions comprising 250,000 square feet and more than $37 million to date in 2020,” Osbourne said. “We are looking forward to ongoing growth in 2021, beginning with the leasing up of this highly desirable asset.”