72780 Country Club Drive in Rancho Mirage, California | Courtesy HFF

Fully Leased Medical Condos Sell for $16M

Carrie Rossenfeld Healthcare & Education

Five separate sellers represented by HFF have sold eight fully leased condominiums within a class-A medical-office building in Rancho Mirage, California, for $16.3 million to Milwaukee-based Hammes Partners. The total size of the space was 40,027 square feet.

The property is located at 72780 Country Club Drive at the “main and main” intersection of Country Club Drive and Monterey Avenue. The buyer purchased the assets in an off-market, sale-leaseback transaction.

Completed in 2008, the majority of the units in the one-story property are leased to Eisenhower Health. The property is less than two miles from the 463-bed Eisenhower Medical Center, the dominant hospital in the area. As part of the transaction, the sellers signed long-term triple-net leases.

The HFF medical-office investment advisory team representing the seller consisted of managing director Evan Kovac, director Andrew Milne, and senior associate Trent Jemmett. “The new owner has the opportunity to build a long-term relationship with Eisenhower Health and expand its footprint within Southern California,” Kovac says. “The condominium units represented the unique opportunity to acquire an institutional-quality core medical office within an excellent market.”

Hammes Partners is a private-equity firm focused exclusively on the U.S. healthcare real estate market. The firm is complemented by a suite of services offered by its affiliates, including Hammes Company Healthcare.

Rancho Mirage is considered a high-barrier-to-entry market with robust demographics.