Paoli Medical Complex Sold to California Firm

A medical campus located across the street from Paoli Hospital has been sold to an investment firm from California, according to a statement from CBRE, Inc., the company that brokered the deal.

The 99,059-square-foot Paoli Medical Plaza will belong to Griffin-American Healthcare REIT III, Inc., through its sponsor,American Healthcare Investors, LLC, in Irvine, Calif., for an undisclosed amount.

The CBRE Team of Steve Marzullo and Justin Marlowe of the Investment Properties Philadelphia Commercial Group, along with Chris Bodnar and Lee Asher of the U.S. Healthcare Capital Markets Group represented the seller, Paoli Office Park Partners, L.P., a partnership affiliated with Blank Aschkenasy Properties of West Conshohocken.

“This is a premier medical center with some of the highest quality multi-tenant medical office space in the Philadelphia region,” said Marlowe, Senior Associate with CBRE’s Capital Markets Group in Wayne. “It is strategically located next to Paoli Hospital, and there is a great synergy between the tenants of the campus and the hospital.”

Paoli Medical Center is comprised of three buildings and is anchored by Main Line Health, which also owns and operates Paoli Hospital. Main Line Health occupies 37 percent of the properties for clinical, billing, and administrative uses. The campus also includes several other prominent healthcare tenants including Paoli Hematology/Oncology, Philadelphia Hand Center, Premier Orthopedics, Aligned Medical Group, Urology Health Specialists, Women’s Health Care Group of PA and LabCorp.

“We continue to experience significant capital focused on healthcare real estate investment, causing on-going yield compression,” added Marzullo, Senior Vice President with CBRE. “Paoli Medical Plaza attracted a diverse mix of institutional and private investors from across the U.S.”