Glendale MOB’s Location, Stable Tenants Make for Prime Investment

Dallas-based MedProperties Fund III recently acquired the 67,060-square-foot class-A Glendale Medical Office Building (MOB) II in Glendale, CA. The price was undisclosed. The six-story facility is located at 1510 S. Central Ave. on the campus of CommonSpirit-affiliated 241-bed Glendale Memorial Hospital in Glendale, about 10 miles north of Los Angeles.

“The MOB is 89 percent leased with a diverse mix of medical practices that have occupied the MOB for many years,” says Jon Foulger, MedProperties director of acquisitions. “The on-campus location and the stability of the tenant base we felt combined to offer an excellent investment opportunity for our firm.”

Darryl Freling, MedProperties managing principal, said the MOB is leased by a “diverse, synergistic” mix of healthcare provider tenants. The range of medical specialties includes ophthalmology, dialysis, orthopedic, podiatry, bariatrics, dermatology and hematology. Freling also noted that in the past two years, the previous owner made extensive renovations to the 1980s-built MOB, maintaining the project’s class-A status in all respects.

Glendale MOB II is part of MedProperties’ third discretionary fund, MedProperties Fund III LP. Debt for the transaction was provided by Capital One.