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1/03/20
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A 1031 exchange investor has paid $6.1 mil for a newly constructed, 11.3k sf ($539/sf) outpatient dialysis clinic in Modesto, CA. The deal closed at a cap rate of 5.1%.
The outpatient clinic is located at 1328 Coffee Rd, just down the street from Sutter’s Memorial Medical Center and less than a block away from a variety of neighborhood amenities. Meridian acquired the vacant, 39.2k sf infill parcel to build the Modesto dialysis clinic in April 2018 and completed the development in May 2019.
“This particular site is much tighter and narrower than most developments we’ve done for a building of this size,” said Mike Conn, Meridian Executive Vice President. “We had to structure a deal with the neighbor for a shared driveway to functionally layout the building and site.”
The project architect was Harriman Kinyon Architects of Walnut Creek, CA. Kier and Wright of Livermore, CA was the civil engineer and the general contractor was H2 Builders of Napa, CA.
According to Conn, “Kidney failure, also known as end-stage renal disease (ESRD), is a fatal condition unless the patient undergoes dialysis, in which a machine filters toxins and fluids from the blood outside the body, or unless they receive a kidney transplant. In-center hemodialysis patients are treated approximately four hours a day, three times a week, for the remainder of their lives.”
The buyer was looking to diversify their portfolio into healthcare with a single-tenant leased investment. Meridian was represented by Chris Sheldon of Cushman & Wakefield of San Francisco in the sale.
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