Cypress West Partners Acquires Riverwalk Medical Plaza
Rancho Santa Margarita, CA (May 25, 2017) – Cypress West Partners announced that it has acquired Riverwalk Medical Plaza, a 54,923-square-foot campus-adjacent medical office building located at 9450-9500 Stockdale Hwy. in Bakersfield. The Southern California-based healthcare investment, leasing and property management firm acquired the property in a joint venture with MedProperties Holdings LLC, a national, healthcare-focused real estate private equity firm headquartered in Dallas. This transaction marks Cypress West’s fifth acquisition with MedProperties. Capital One Healthcare Financial Solutions provided the debt for this transaction, as well as the joint venture’s previous four acquisitions.
Riverwalk Medical Plaza is a two-story medical office building built in 2005. The property is 94 percent occupied with major tenants that include: Dignity Health, Quest Diagnostics, Children’s Hospital of Los Angeles (CHOLA), and GEM Physicians Medical Group. Riverwalk Medical Plaza provides unrivaled proximity to the Dignity Health Mercy Hospital Southwest of Bakersfield and offers a rare chance to be within walking distance of the Mercy Campus.
“This building is right down the middle of our fairway and we saw an opportunity to keep the band together with MedProperties and Capital One. Riverwalk is a best-in-class asset campus adjacent to the dominant provider in the market. At 94 percent leased, there is still some work to be done for us to add additional value and to solidify its position as the best asset in this submarket for years to come,” said Chris Cumella, Cypress West Partners.
Dignity Health Mercy Southwest of Bakersfield is a full-service, comprehensive health care facility, dedicated to providing the finest medical care for the community. Dignity Health is made up of more than 60,000 caregivers and staff who deliver excellent care to diverse communities in 21 states. Headquartered in San Francisco, Dignity Health is the fifth largest health system in the nation and the largest hospital provider in California.
This acquisition brings Cypress West’s total portfolio to over 1.7 million square feet in three major markets in the Southwestern United States. “Reaching 1.7 million square feet is a major milestone for our company and the fact that we have achieved this in less than four years is a testament to the focus and dedication of our employees,” said Jeffrey Johnson, Cypress West Partners. “We now have scale in the markets where we operate and our management and leasing platform is beginning to make a significant impact on our portfolio.”
Bryan McKenney, Director at Cypress West, will handle property leasing. “We look forward to supporting the business growth of the current tenant roster and to attract practices that are complementary to the building and surrounding area,” said McKenney. According to Cypress West, the firm will invest initial capital dollars to refresh the hallways and common areas.