Santa Monica Physicians Center is a four-story, Class "A" medical office building containing 36,765 sf located in Santa Monica, California. It was originally developed in 1972 and completely renovated in 1993. The property is located within walking distance of two major hospitals, Saint John's Hospital and Medical Center and UCLA Medical Center.
Acquired in December, 2002 the property was delivering a Net Operating Income of $816,869 as of December, 2004 and based on then cap rates of 7% a value of $11,669,557. Average rents at the time were at $2.65 psf for new five- to seven-year leases.
Net Operating Income as of 12/08 was $1,234,177 and the current estimated value is $19,746,837 based on current cap rates at 6.25% for medical office buildings located in the Westside of Los Angeles. Average rents as of 12/08 are at $4.25 psf for new ten-year leases, with annual increases of 3% per year.
This is an incredible increase in value of 93.6% in 6 years through prudent and strategic driving of rents at the property through implementation of a solid asset management plan, which included a remodeling of the lobbies and all common areas in 2007.
"Under Karen Kennedy's leadership, Santa Monica Physicians Center and my own investment experienced a dramatic increase in value. I wouldn't make a move without consulting Karen and her team at NAS."
—Dr. Irvin Q Sobel, Investor