Paul Braun, Chris Ross
4S Health Center, 16918 Dove Canyon Road, San Diego
40,000 square feet; CCare’s premises approximately 11,000 square feet
Total Consideration: Project value is approximately $18.5 million, anchor tenant transaction value is $5.1 million
About the property:
This building was San Diego County’s first “speculative” medical office development since 2008. It is located in the new 4S Ranch community. Colliers represented the building developer in the project development as well as the anchor tenant.
The anchor tenant was CCare, a new oncology group that was looking to be centrally located in North County. This oncology specialty practice delivers an integrative and comprehensive cancer management that includes radiation therapy using a linear accelerator (a multimillion dollar device that delivers radiation by way of a precise laser beam that targets the cancer cells specifically) and requires both equipment and patient to be located in a complexly designed and constructed 1,000-square-foot concrete bunker with perimeter walls four feet thick.
This type of facility did not exist in San Diego, so our team had to first locate the right building which could accommodate this unique tenant improvement. The actual design and structural integrity of the bunker had to be implemented into the design and structure of the development of this medical office building.
Closing the deal:
There were extremely complex and unique tenant improvement requirements which had to be designed and delivered on a critical timeline.
The team was successful in securing an anchor tenant, which enabled the developer to reach the pre-leasing requirements for project financing. The anchor tenant’s use required extremely complex tenant improvements. This necessitated all parties involved to provide an abundant amount of creativity to solve a myriad of complex terms, conditions and construction challenges.
This medical office building development and individual lease transaction overcame a multitude of market, economic, design and construction challenges. “This deal represents the most complex and rewarding transaction of my 25 years in the health care real estate profession," said Paul Braun, senior vice president of Colliers International San Diego.