Meridian and Harrison Street have obtained a floating rate loan valued at $51.31 million to transform an Orange County office into a medical office.
HIG Realty Partners provided the three-year financing, which comes with two one-year extension options. JLL Capital Markets represented the borrowers and announced the financing, but did not disclose the value of the loan. Meridian is a subsidiary of Marcus & Millichap Company based in Walnut, California.
The 110,392 Sq Ft., Class A office is at 114 Pacifica Court in Irvine, California the largest city in Orange County, which has grown a health and medical center hub.
The office is a couple of miles from both Hoag Hospital’s Irvine campus and the City of Hope Cancer Center project and the UCI Medical Center Irvine-Newport project. It’s also near Hines’ creative office campus, Intersect, and the Von Karman Tech Center.
The conversion project involves adding a three-level parking structure in the north end of the property.
The office is currently 49% occupied by tenants that will need to start looking elsewhere. Meridian and Harrison Street will convert the general office tenants to medical office tenants as their leases roll over the next two years.
The JLL Capital Markets team representing the borrower was led by John Chun.