SAN DIEGO--(BUSINESS WIRE)--Milan Capital and ALTO Real Estate Funds, through a joint venture, have recently acquired Pomerado Professional Plaza, a 47,000 square foot medical office complex in the City of Poway, CA, a rich suburb of San Diego. The transaction cost is $13.8M (including renovation and tenant improvement costs).The property sits across the street from Pomerado Hospital in the medical office corridor of the city.
Originally developed in 1983, the property consists of two office buildings along Pomerado road, a main thoroughfare in the city. The buildings were 55% occupied at the time of close with a mixture of general office and medical office tenants. The new ownership plans to renovate the dated look of the buildings, and fill the vacancies with medical office tenants.
“Pomerado Professional Plaza is an excellent value-add opportunity for our partnership in a solid medical market. The occupancy for medical office space in the Pomerado Hospital area is over 90% with rents steadily increasing over the past five years,” expressed Yaniv Melamud, Co-Founder & CEO of ALTO Real Estate Funds.
Landon Wright, Director of Acquisitions for Milan Capital, added, “By extensively remodeling the exterior, corridors and interior of the suites, we’ll be able to offer quality medical office space to tenants in the area. Right now we’re the “older-looking house” on a great street, and we’re excited to update this property for tenants and patients.” The remodeling is scheduled to start within the next few months.
Pomerado Plaza is the second acquisition in the San Diego area this year for Milan Capital; the first being the Northgate-anchored shopping center in Chula Vista. Milan has been expanding its footprint in the San Diego market and is currently renovating its Target-anchored shopping center in Oceanside.
This is ALTO’s 15th acquisition in the West Coast area. ALTO has been increasing its investment activity in the West Coast and is planning to open a local office in 2016 to support the growth. The addition of the West Coast office will be ALTO’s 4th location, complementing the NY, Dallas, and Tel –Aviv operations.
The new ownership has engaged Travis Ives, with Cushman & Wakefield, to spearhead the leasing efforts for the project. Travis has been active in medical office leasing in this area for many years.
About Milan Capital
Milan Capital is a privately-held commercial real estate investment and management company headquartered in Orange County, CA with a portfolio exceeding 2.5M square feet of retail and office properties, primarily in southern California. Milan focuses on value-add investment opportunities and partners with outside capital on its projects. See www.milancap.com.
About ALTO Real Estate Funds
ALTO Real Estate Funds is a series of closed end equity funds specializing in the acquisition of income-producing real estate assets located throughout the U.S. ALTO recently completed fundraising for its second fund, ALTO Fund II, for a total of $138 million from institutional and private investors. To date, ALTO has invested in 51 properties, with a value of approx. $900 million representing a total area of 10 million square feet and 11 successful exits. ALTO’s headquarters are in New York City, NY with regional offices in Dallas, TX and Tel-Aviv, Israel. For more information, please visit www.alto-investments.com