Portfolio Investment in Sacramento Launches a New Market for Anchor and Crosses $1billion in New Investments
Anchor Health Properties has completed the acquisition of a four building medical office portfolio in Sacramento, California through a joint venture with an affiliate of Morgan Stanley Real Estate Investing. With this acquisition, Anchor Health Properties has crossed $1billion of total new investments made since launching its investment platform in July 2016.
Located north of downtown Sacramento in the growing community of Roseville, the Parkway Medical Office Portfolio features best in class regional healthcare tenancy, such as Sutter Health, UC Davis Health, and Kaiser Permanente. The buildings are proximate to Kaiser Roseville Medical Center and Sutter Roseville Medical Center. At nearly 300,000 square feet of total space, the portfolio investment provides instant scale in the Northern California market for the Anchor platform. The portfolio is among the largest medical office sales in Northern California in recent years.
“Anchor Health Properties leveraged strong relationships with its capital partner and the seller to execute on this significant transaction,” said James Schmid, Chief Investment Officer with Anchor. “We see a large amount of potential upside in the investment over time given the opportunity to expand medical tenancy at the campus. The overall Roseville market has a dearth of high quality medical office space and a growing need for additional medical services. These assets are well positioned to facilitate that need. When Ben Ochs and I started the investment initiative in 2016, we had modest goals in mind for what we hoped to achieve. Thanks to a best in class team of professionals and best in class capital partners, we’ve far exceeded our hopes for where we could take the investment platform.”
Originally developed as Class A commercial office buildings, the campus has migrated to a medical focus over time given geographic proximity to local hospital campuses, as well as significant parking which is scarce in the market. Services provided at the Parkway campus include a brand new multi specialty facility for UC Davis Health, radiology, imaging, and vascular services for Sutter, and behavioral health and ophthalmology for Kaiser.
“We are proud of the expansion of our relationship with the Morgan Stanley Real Estate Investing team and the expansion into a new best in class market.” said Ben Ochs, Anchor Health Properties’ Chief Executive Officer. “Anchor anticipates growing its operational and investment presence in Northern California with momentum from this transaction.”
Launching a local office in Roseville, Anchor will provide property management services for the portfolio. Newmark Grubb Knight Frank’s medical office team has been engaged to work with Anchor to provide leasing services for the property. Cushman & Wakefield provided sales advisory services to the seller, an affiliate of Broe Real Estate Group.