Anchor Health Capitalizes on Scarcity of Medical Space

Anchor Health Properties, through a joint venture with an existing institutional equity partner, recently acquired a three-story 106,018-square-foot class-A medical office building in the Burlingame submarket for $64 million. The area features a scarcity of medical office space as new development is focused on life science and residential real estate.

Anchor intends to continue the redevelopment progress of previous ownership with significant updates to several common areas. This project will be the first of several planned investments for Anchor in the San Francisco MSA, a new market as the firm continues its expansion across the Western United States.

1720 El Camino Real is adjacent to Sutter Health’s Mills-Peninsula Medical Center, a 242-bed hospital. Existing tenants include Sutter Health, Stanford Children’s Health, DaVita Dialysis and several local single provider physician groups.

“This asset represents our continued investment momentum and focus in a dynamic healthcare market where we are seeking to add scale,” said James Schmid, chief investment officer and managing partner with Anchor. “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 U.S. healthcare such as Sutter Health and Stanford Children’s Health.”

Newmark’s Steven Golubchik, Seth McKinnon and Ben Appel provided advisory services on behalf of the seller. Anchor Health Properties will also provide asset, property management and leasing services at this location.