New York Life RE Investors’ Madison Center Buy Solidifies MOB Resiliency

Medical offices are proving resilient in a post-COVID market, as the need for expansion is ever-present among investors. The recent sale of Escondido’s Madison Medical Center, formerly Makena Medical Center, further solidifies just that. New York Life Real Estate Investors, on behalf of an institutional client, acquired the property from Makena with partner and property manager, Lincoln Property Company (LPC) West.

“The opportunity to acquire a true class-A medical office asset adjacent to the burgeoning Palomar Medical Center was very attractive to the partnership. Further, the dynamics within the medical office space – especially within this pocket – were compelling for a host of reasons. LPC continues to be bullish on the sector and keen to grow its medical office portfolio both in San Diego and on the West Coast,” says Ben Bucci, vice president of acquisitions at LPC.

Located at 1955 Citracado Pkwy. in Escondido, the steel-frame building features a three-story configuration totaling 44,261 square feet. Representing both buyer and seller, Marc Posthumus and Ryan Foley of Colliers teamed up to facilitate the transaction.

“The property’s design-build team, Barnhart-Reese, constructed this high-quality class-A medical property in 2011 with the foresight of utilizing a LEED-certified design,” says Posthumus. “We don’t see medical office buildings of this caliber become available too often.”

Most notably, the property’s proximity to Palomar Medical Center’s 56-acre campus provides its tenants invaluable access to the campus’ 11-story 740,000-square-foot hospital facility.

“The stability and resilience of the medical office market throughout the pandemic, in addition to the property’s strategic location and quality design, made for a very attractive opportunity and an asset to new ownership,” says Foley.