The Pomerado Outpatient Pavilion in Poway recently sold to a publicy traded REIT. Although the purchase price and terms of the transaction are confidential, the total transaction value was in excess of $100 million.

The 160,000-square-foot medical office building is mostly occupied by Palomar Health and its associated medical groups. It is adjacent to its Palomar Medical Center Poway hospital.

“The savings achieved and access to fresh capital will support our commitment to delivering the best care to the communities we serve while being good stewards of the district’s assets,” said Diane Hansen, Palomar Health’s chief executive officer. “We’re looking forward to expanding our services at this location and enjoying a new partnership with an experienced owner of medical office buildings.”

Travis Ives with Cushman & Wakefield’s healthcare team represented Palomar Health in the transaction.

“This transaction marks the culmination of a long-term strategy we devised with Diane Hansen all the way back in 2016,” said Ives. “Faced with a long-term lease at above market rents, Diane was seeking a solution to reduce rental obligation and gain access to much-needed capital for tenant improvements. The new master lease is projected to save the healthcare system in excess of $2 million annually in addition to providing immediate access to capital for tenant improvements to expand services in the building.”