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4/01/25
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A joint venture between Archer Property Partners and Real Estate Development Associates (REDA) has acquired a 78k sf office building at 3300 Irvine Ave in Newport Beach, with plans to transform it into a state-of-the-art medical outpatient building (MOB). The partnership received unanimous approval from the Newport Beach Planning Commission in January 2025 and is now moving full speed ahead with the project.
Newport Irvine Medical Center, as it will be known, is a three-story building located just off State Route 73 in Newport Beach. Originally developed by The Koll Company in 1980, the building has long served as a general office space. However, with the continued decline in demand for traditional office space since the pandemic, the new ownership is converting the property to what it sees as its highest and best use: a modern medical office facility.
“Newport Beach is one of the most sought-after locations for medical office space in Southern California,” said R.J. Sommerdyke, principal at Archer. “Medical office vacancy in the city is exceptionally low — less than 5% — with a severe lack of large blocks of contiguous space. Currently, there is only one space larger than 10k sf available citywide. Many existing MOBs are aging and no longer meet the needs of today’s providers, making redevelopment projects like this essential.”
In addition to these strong fundamentals, Newport Beach’s medical office market is being reshaped by intensifying competition between major health systems. Hoag and UC Irvine Health are aggressively expanding their presence, each vying for market share in one of the region’s most affluent healthcare markets. Hoag recently announced plans to expand its specialty care services, while UC Irvine is investing $1.3 bil in a new medical complex in Irvine. This race for expansion is driving heightened demand for high-quality, well-located medical office space, especially as private physician groups weigh their options between affiliating with these growing institutions or remaining independent in an increasingly consolidated healthcare landscape.
Rising rental rates further highlight the tight market conditions. Since the partnership first explored acquiring the property, medical office rental rates have increased by over 10%, driven by strong demand from healthcare providers. Newport Beach’s three newest medical office developments — The Walk (anchored by MemorialCare), Newport Harbor Medical Plaza (anchored by USC Keck), and Newport Heights Medical Campus (anchored by UCI Health) — are all 100% leased, underscoring the intense demand and limited availability of premium medical space in the area.
Newport Irvine Medical Center will be comprehensively reimagined to support a wide range of healthcare providers, from specialty practices to wellness services.
Key upgrades include:
• A New Three-Story Atrium – A central stairwell enhances accessibility, giving patients the option to use stairs or elevators based on their needs as well as visually opening the center of the building through volume and space.
• Enhanced Common Areas and Elevators – Modernized finishes and touchless technology improve hygiene and patient experience.
• Future-Proof Design – Offers long-term flexibility, enabling providers to adapt to changing medical technologies and patient needs.
The partnership has submitted plans to the city and expects to break ground on a new parking structure in June 2025. The building renovation is planned to start in September 2025 with project completion estimated for spring 2026. MedWest Realty Inc has been retained to handle the leasing of Newport Irvine Medical Center.
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