Real Estate Development Associates Completes 59,978 sf Medical Office Campus in Newport Beach, Calif.

NEWPORT BEACH, Calif., May 03, 2018 (GLOBE NEWSWIRE) -- Real Estate Development Associates, LLC (REDA), a diversified investment company that acquires and develops industrial and office properties in Southern California recently completed the development of Newport Heights Medical Campus, a 59,978-square-foot medical center in the Santa Ana Heights area of Newport Beach, California. The property, which is set to open in July, is already 65 percent leased with deals pending to bring it over 95 percent leased.

Major tenants for the buildings include the UC Irvine Health, Starpoint Health, California Foot and Ankle Institute and Goretti Ho Taghva, MD, Inc. The remainder of the space is being targeted for an urgent care facility and pharmacy.

“This property fills a need in this area of Newport Beach, which is lacking for options for patient services,” said Jason Krotts, co-founder and principal of REDA. “As evidenced by the relatively high lease rate, we believe this location will not only be a successful real estate endeavor, but also provide opportunity for medical operators looking to break into this desirable market.”

There is currently 1.55 million square feet of medical office space in the greater Newport Beach and Costa Mesa region with second generation medical space vacancy sub-five percent, the lowest in the county, according to Cypress West Partners. Due to the low vacancy rate, many quality medical office buildings in the area are experiencing a waiting list of tenants.

The campus consists of two Class A buildings totaling 59,978 square feet. Building One, located at 20350 Birch Street, is 18,303 square feet and Building Two, located at 20360 Birch Street, is 41,675 square feet. Both buildings benefit from a 5:1,000 parking ratio and feature lush landscaping and outdoor courtyards. Each building is designed for OSPHD-3 licensed medical clinics to support numerous uses including outpatient and cosmetic surgery.

“The medical office building market has an urgent need for new construction,” said Krotts. “With a slew of new codes and regulations coming into effect, many older medical tenants, especially older compounding pharmacies, are struggling to keep up to date. We have taken great care in designing a project that not only provides the right type of space for these unique tenants, but also improves the surrounding community and creates a sense of place for patients and customers.”

Bryan McKenney of Cypress West Partners is handling the leasing of the project. Ware Malcom is the project architect. Millie and Severson served as the general contractor. Financing was provided by Bank of the West.

“There is a shortage of quality medical office space in Newport Beach, in general, and especially large blocks of space that would allow new programs, combination of practices and new market entrants,” said McKenney, director of brokerage services at Cypress West Partners. “The submarket has great demographics, great practitioners and a great city brand. We now have a place where the medical community can serve its patients and the broader market as the medical landscape continues to evolve. As medical services become even more focused on the patient experience, we are delivering a project that is top quality, has easy parking and easy access for patients – the foundation of a successful medical building.”

This project completion is one of many in REDA’s active pipeline. The firm recently recapitalized the West Ontario Commerce Center, a 2.6 million-square-foot industrial project in Ontario, California. REDA also recently broke ground on the Perris Gateway Commerce Center in Perris, California, a 400,000 square-foot industrial project. The firm has a pipeline of industrial project in excess of 3 million square feet in planning stages. REDA is currently seeking new investment and development opportunities where it can create value through transformation.

About Real Estate Development Associates, LLC (REDA)
Based in Newport Beach, Real Estate Development Associates is a diversified investment company which acquires and develops industrial and office properties throughout Southern California. Owned and operated by principals Jason Krotts and Bill Goltermann, the firm has invested in more than $200 million in equity in the past 18 months. The partners of REDA have completed more than 15 million square feet of developments. For more information, please visit www.redallc.com.