SAN JOSE — A big health care provider has bought a San Jose office building where the organization already offers an array of medical services.
El Camino Health purchased the medical office complex at 625 Lincoln Ave., from the Sobrato Organization, a large real estate developer, according to documents filed on Sept. 2 with the Santa Clara County Recorder’s Office.
The health care giant paid $19.5 million for the building through an all-cash transaction, county documents show.
The property purchase was arranged through CBRE commercial real estate brokers Scott Prosser, Joe Moriarty, Jack DePuy, Mike Taquino, Kyle Kovac, and Alec Haley.
The health care provider currently operates Willow Glen Urgent & Primary Care Clinics in the Lincoln Avenue building. The recently purchased building totals 35,300 square feet, according to CBRE. The deal enables El Camino Health to assure it can continue to provide health care services and retain control of its facilities in the area.
A growing number of development proposals and projects are pushing ahead in this part of San Jose. In some cases, the development activity and property proposals have put the squeeze on small businesses and prodded them to seek other locations.
“The property benefits from its central San Jose location with its proximity to newly developed residential, renovated retail centers and public transit,” said Prosser, a CBRE executive vice president.
The intense interest in real estate sites in this area could make the site a choice location for development.
Case in point: The footprint of Google’s Downtown West mixed-use neighborhood is less than 1.5 miles away, as measured by the distance to the Diridon train station in downtown San Jose.
Numerous projects and proposals have sprouted in the vicinity in response to Google’s dramatic plans for new offices, homes, shops, restaurants, hotel facilities entertainment hubs and cultural loops in the Downtown West neighborhood.
Despite the potential for increased development in the area, medical office buildings are one category of project that isn’t being built in this part of San Jose. That makes properties such as the just-bought site on Lincoln Avenue more valuable.
“The shortage of medical office space in this area will continue to place upward pressure on rental rates and continued increase on medical office building values,” Prosser said.