Real Estate News
Anchor Health Properties Expands Northern California Footprint with 106,018 Square Foot Bay Area Acquisition
Anchor Health Properties (Anchor), a national full service healthcare real estate development, management, and investment company focused exclusively on healthcare facilities, recently acquired a three-story, 106,018 square foot Class A Medical Office Building in the Burlingame submarket of San Francisco, California. The newly renovated asset was acquired through a joint venture with an existing institutional equity partner, and features a five-story parking garage with convenient access to each floor of the building. This project will be the first of several planned investments for Anchor in the San Francisco MSA, which is a new market for the Company as it continues its broad expansion across the Western US.
Strategically positioned in the Mid-Peninsula Region between San Mateo and San Francisco, 1720 El Camino Real is adjacent to Sutter Health's Mills-Peninsula Medical Center, a 242-bed hospital, and is occupied by a highly synergistic mix of tenants with a strong presence of cross referrals and affiliations with market leading health systems and hospitals. Additionally, the adjacent hospital's continued growth will lead to more demand for Class A specialty care space within close proximity.
The area features a scarcity of medical office space as new development is trending on life science and residential real estate. Anchor intends to continue the redevelopment progress of previous ownership with significant updates to several common areas. Anchor's development platform will lead the redevelopment efforts at the building.
Anchor tenants in the building include Sutter Health (Moody's A1), a well-established, non-profit, regional health system operating 24 hospitals and more than 200 clinics in Northern California, and Stanford Children's Health (Moody's Aa3), the Bay Area's largest healthcare system dedicated to children and expecting mothers with a state of the art 605-bed children's hospital, cancer center, and numerous outpatient clinics in the broader San Francisco area. A mission critical site for Sutter Health, specialty services at this location include endoscopy, orthopedics, gastroenterology, and optometry. Complementary pediatric and obstetrics services are offered by Stanford Children's Health. Additional tenancy includes DaVita Dialysis and several local single provider physician groups.
"We are thrilled to finally launch our platform efforts in the San Francisco market, and expand our broader presence in Northern California with this best-in-class and highly sought after acquisition," said James Schmid, Chief Investment Officer and Managing Partner with Anchor. "This asset represents our continued investment momentum and focus in a dynamic healthcare market where we are seeking to add scale. The El Camino Real facility meets important investment criteria including proximity to a large hospital campus and intense demand from local healthcare providers where we have the opportunity to form a long-term relationship with respected names in US healthcare, such as Sutter Health and Stanford Children's Health."
Echoing Mr. Schmid's comments, Ilya Hvostikov, who led the acquisition process on behalf of Anchor's investments team, also noted, "The Bay Area is a highly desirable healthcare market for providers and owners with infrequent medical office investment opportunities, and this investment is a continuation of that theme. As we focus on building long-term, win-win relationships with local and regional physician groups, we are excited by every opportunity to help our physician tenancy make the most of their medical real estate and we are looking forward to many more such opportunities with Sutter Health and Stanford Children's Health."
Newmark's Head of Northern California Capital Markets Steven Golubchik, Senior Managing Director Seth McKinnon, and Executive Managing Director Ben Appel provided advisory services on behalf of the Seller. As the new owner of the facility, Anchor Health Properties will also provide go forward asset, property management, and leasing services at this location.
About Anchor Health Properties
Anchor Health Properties is a national, full-service healthcare real estate development, management, leasing, and investment serving investors and health systems. Anchor takes a strategic approach to navigating the extremely competitive healthcare marketplace, considering multiple angles, such as retail drivers, customer experience, branding and efficiency of the project. We develop and manage projects across the United States that respond to the new landscape of employed physicians, team-based care, the need to optimize assets and reduce duplication, and the integration of care and technology. Anchor manages and leases seven million square feet of medical office space, inclusive of numerous projects under construction. Anchor maintains multiple offices nationwide and features more than 80 professionals in its ranks. Over the past five years, Anchor principals have acquired and/or developed more than $3 billion of medical real estate across the country. Healthcare today calls not only for new and more efficient ways of delivering outpatient services, but also a different kind of healthcare development and management company. For more information, please visit: www.anchorhealthproperties.com.
