1605 Avocado Ave Newport Beach, CA
Exceptional Single Tenant Fashion Island Investment Opportunity | 10-Year NNN Medical Office Lease
Marketing description
WORLD RENOWNED HEALTHCARE FUNDAMENTALS
►Healthcare Expansion | Orange County is experiencing a healthcare expansion unparalleled by any other city in California. Currently, there are three hospital expansions in the areas surrounding Newport Beach. Hoag’s $1B expansion off Sand Canyon, UCI Health’s new $1.3B campus being built along Jamboree,
and City of Hope’s $1B expansion to their Alton campus they acquire a few years ago.
►Orange County Healthcare | The OC Business Journal report that OC’s largest hospital revenues grew 9% in 2024 to $12.2B. 2024 was in line with the record year in 2023 of 9.1%, marking the fourth straight year growth has exceeded 7%. Led by CHOC and UCI, other notable OC systems that have experienced tremendous growth include Hoag, Providence, and MemorialCare.
PRESTIGIOUS NEWPORT BEACH ADDRESS
►Iconic, High-Retail Location | Located in the heart of Fashion Island, the property is steps away from world-class retail, dining, and entertainment. Fashion Island is Orange County’s premier coastal shopping destination, featuring luxury brands, fine dining, and first-class experiences. The property’s proximity to affluent residential neighborhoods and iconic landmarks underscores its status as a generational investment within one of the most prestigious and supply-constrained submarkets in the U.S.
Strong Market Fundamentals Driving Robust Rent Growth
►Marquee Newport Beach office submarket is among the best performing and most desirable submarkets in the country. The Property’s Fashion Island submarket has a historically-low direct vacancy of 5.2% in 1Q25.
►Fashion Island’s medical office market consistently outperforms the rest of Orange County, with the former having a 3.2% direct vacancy in 2Q18, as compared to the latter’s 8.4% direct vacancy. Low vacancy, combined with a low inventory of only 13 medical office buildings, is pushing rents higher in Newport Beach’s Fashion Island submarket.
Investment highlights
GENERATIONAL NEWPORT BEACH OFFICE INVESTMENT OPPORTUNITY WITH EXCEPTIONAL CASH FLOW
►Institutional-Quality Asset | Attractive and exceptionally-maintained medical office building offering iconic Fashion Island location and highly-specialized improvements for established tenancy.
►Established Tenancy w/ Attractive Terms | The Property, built-to-suit for medical use, will be delivered with a brand new 10-year NNN lease to Newport Diagnostic Center (NDC), a fully-accredited medical imaging facility whose renowned capabilities rival those of Orange County’s top hospitals. NDC’s board-certified physicians and industry-certified technologists provide “best-in-class” medical services through state-of-the-art technology and personalized care.
►Mission-Critical Location | The Property provides mission-critical proximity between NDC and its affiliated Women’s Center practice next door, enabling a “campus” synergy that makes possible the delivery of comprehensive care.
►Compelling Ownership Opportunity | Newport Diagnostic Center’s long-term tenancy and substantial remaining lease term provide new ownership the benefits of existing cash flow stability and certainty, strong returns and ease of ownership.
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