San Jose — A major healthcare provider purchased an office building in San Jose, and the organization already provides a range of healthcare services.
El Camino Health purchased a medical clinic complex at 625 Lincoln Ave. from the Sobrato Organization, a large real estate developer, according to documents filed with the Santa Clara County Recorder’s Office on September 2.
The healthcare giant paid $19.5 million for the building through an all-cash transaction, county documents show.
The purchase of the property was arranged through CBRE’s commercial real estate brokers Scott Prosser, Joe Moriarty, Jack DePuy, Mike Takino, Kyle Kovach and Alec Haley.
The healthcare provider currently operates the Willow Glen Emergency and Primary Care Clinic in a building on Lincoln Avenue.The recently purchased building has a total area of 35,300 square feet, according to CBRE. The agreement will allow El Camino Health to continue to provide medical services and maintain control of local facilities.
More and more development proposals and projects are underway in this area of San Jose. In some cases, development activity and real estate proposals have put pressure on small businesses, prompting them to look elsewhere.
CBRE executive vice president Prosser said:
Strong interest in real estate sites in the area may make this site an option for development.
Case in point: Google’s Downtown West mixed-use district footprint is less than 1.5 miles as measured by the distance to Diridon Station in downtown San Jose.
In response to Google’s dramatic plans for new offices, homes, shops, restaurants, hotel facilities, entertainment hubs and cultural loops in the Downtown West district, the area has spawned a number of projects and proposals.
Medical office buildings are one category of projects not being built in this area of San Jose, despite the potential for further development in the area. This increases the value of real estate, such as the recently purchased land on Lincoln Avenue.
“The scarcity of clinic space in the area will continue to put upward pressure on rental rates and continue to increase the value of clinic buildings,” said Prosser.