Project Summary
Mercy North Medical Office Building is part of a 671,811 SF medical office portfolio that NexCore Group and its capital partner Heitman LLC acquired in October 2013. The portfolio contains 13 medical office buildings—eight in southern California and five in Arizona around the Phoenix metropolitan area. Dignity Health, the fifth-largest hospital system in the nation, occupies approximately 33 percent of the portfolio. Nine of the buildings in the portfolio reside on the campuses of Dignity Health hospitals, making them strategic real estate for the health system.
The medical office portfolio is generally located in high-growth markets with a strong payer mix and high demand for medical procedures. Seventy-seven (77) percent of the portfolio is located in markets whose population growth over the next five years is expected to be above the national average, with markets for five of the properties seeing double-digit population growth.
Mercy North Medical Office Building is located on Dignity Health’s Mercy Southwest Hospital campus in Bakersfield, CA. The building is 38,621 SF and includes a mix of pediatric and orthopedic practices. As one of only two medical office buildings in the sub-market that is physically connected to the hospital (both are controlled by NexCore), the building has a competitive advantage compared to others in the Bakersfield area.
"This is a significant portfolio investment, and the resulting buyer was going to be one of Dignity Health’s largest real estate managers. It was important to select a buyer with extensive experience and expertise in managing physician office space. NexCore’s comprehensive approach to medical asset ownership will undoubtedly benefit Dignity Health and enhance the system’s delivery of outpatient clinical services."
