SAN RAMON, CALIF. – (RealEstateRama) — Meridian, a full-service real estate developer and owner of medical real estate, is pleased to announce that it has closed escrow on the sale of its 13,750-square-foot dialysis clinic in Palmdale, Calif. The purchase price was $6.97 million, representing a cap rate of 5.0%. This is the second dialysis clinic that Meridian has sold this year. Earlier this year, Meridian sold a similar clinic in San Rafael, Calif.
The Palmdale clinic is located at 38454 5th Street West in Los Angeles County, near the new Palmdale Regional Medical Center. In 2010, Meridian acquired several buildings and excess land that were owned by the lender General Electric Credit Equities, Inc. The availability and low-land basis provided a unique opportunity to work with a dialysis provider to build a new state-of-the-art clinic in close proximity to the hospital with an affordable rent.
According to Meridian’s COO John Pollock, “Kidney failure, also known as end-stage renal disease (ESRD), is a fatal condition unless a kidney transplant is available or a patient undergoes dialysis, in which a machine filters toxins and fluids from the blood outside the body. In-center dialysis patients are treated approximately four hours a day, three times a week. There is a tremendous need to bring these types of services into the communities where patients live.”
Gary Stache and Bryan Lewitt of CBRE, based in the firm’s Newport Beach and downtown Los Angeles office respectively, represented Meridian, the seller. The buyer, a private investor based in the Central Valley of Calif., was represented by Five Star Land Company, Inc. in Wilton, Calif.