Lionstone Investments made its first move into the medical office sector with the acquisition of Newport Lido Medical Center, a two-building medical office complex totaling 146,510 square feet in Newport Beach, California. The buyer paid $125 million for the fully leased asset through an all-cash transaction, according to Orange County records.
Lionstone Investments is a data-analytics driven real estate investment firm that conceptualizes, analyzes, and executes national investment strategies using proprietary algorithms and advanced analytics to understand the changing ways people in America want to live and work. Lionstone Investments is an offering brand of Lionstone Partners, LLC, which is a wholly-owned subsidiary of Columbia Management Investments Advisers, LLC.
The Class-A property with five- and six-story buildings includes an on-site pharmacy, retail space, two out-patient surgery centers, a medical laboratory and a physical therapy facility, among others. The complex offers ample parking with a ratio of five spaces per 1,000 square feet.
The previous owner was Newport Lido Medical and, according to CommercialEdge data, the disposition represents the first time the property changed ownership. Newport Lido Medical Center sits on nearly seven acres and was built in phases between 1946 and 1990.
Alongside anchor tenants Hoag Hospital Newport Beach Surgery Center and Prime Surgical Center, the long list of tenants includes Fountain Orthotics & Prosthetics, The Ocean Clinic and Magella Medical Group. Hoag Hospital Newport Beach is one of the top 10 ranking hospitals in California, and among the top five hospitals within Greater Los Angeles, according to U.S. News & World Report.
JLL represented the seller in the sale. Senior Managing Directors Andrew Milne and Evan Kovac led the JLL Healthcare Capital Markets team that worked on behalf of the seller.
Across the street from the property sits another medical office building that was acquired in April 2021. Forward Time Corp. purchased the 29,991-square-foot Harbor Medical Plaza property for $41 million. The $1,367 per square foot price set a record at the time for the Orange County medical office market.
