According to a November 18 press release, a multi-tenant medical outpatient building (MOB) in Folsom, California sold for $7.5 million, nearly $3 million more than its last sale in 2016.
The property is a 20,086-square-foot MOB constructed in 2007. It is fully leased to tenants including CGT Global (formerly StemExpress), Folsom Orthopaedics & Sports Medicine and Hanger Prosthetics & Orthotics West. CGT Global, which appears to operate its headquarters from this site, anchors the building. The building is one of nine within the Willow Creek Medical Office Park, situated close to Dignity Health’s Folsom hospital. The price was slightly more than $373 per square foot.
Sales records show the buyer as 1743 Creekside Shak Properties LLC, with an address at a home in Los Altos, California.
According to the real estate information site Reonomy, Lucky 13 Investments LLC, with an address in Placerville, is the seller. The site also shows Waqar Khan, a real estate investor in the region, as a member of the ownership group. Cate Dyer, CGT Global’s founder and CEO, is also listed on Reonomy as a contact associated with the property’s ownership.
Because of the property’s good condition and leasing, the sale is considered an investment, with the anchor tenant on a long-term lease, according to Matt Post, a first vice president with CBRE Capital Markets who helped broker the deal.
MOBs have held values better in recent years than most other kinds of office buildings, but have always had strong investor interest, according to Post, and as reported by the Sacramento Business Journal. According to CBRE, such buildings have a vacancy rate of 4.5% in Folsom, while office buildings in Folsom of less than 25,000 square feet have a vacancy rate of 3.5%.
“Rising construction costs have led to very little new construction, which will keep demand and rents strong for the existing inventory of health care properties,” Post said. In addition to Post, Sammy Cemo and Anthony DeLorenzo of CBRE worked on the sale on the seller’s behalf.
According to data captured in the LevinPro HC database, this acquisition marks the 181st MOB transaction of the year, and the 10th announced in California. There were 198 MOB deals announced during 2023, and 216 announced during 2022.
