Casa Muir Medical Center is a two-story, 14,694 SF multi-tenant medical office building built in the 1960s, located adjacent to the prestigious John Muir Medical Center in Walnut Creek, California. Nearon acquired the property in 2000, performed some basic cosmetic improvements, and managed it as a leased investment for over 15 years. In late-2015, the property became an ideal candidate for an extensive renovation.
WHY RENOVATE CASA MUIR?
For the first time in over a decade, three contiguous suites on the second floor became vacant.
Six other tenants were nearing their lease expiration date.
The building’s major systems and interior improvements were all near the end of their useful life.
The loan was maturing in 2017, so the pre-payment was feasible.
The market opportunity to lease larger blocks of medical space to hospitals and larger medical groups had improved significantly, and market rents in Walnut Creek were exceeding $4.00/SF/FS for its best buildings.
Casa Muir was renovated with sleek modern day architectural features to make the property a best in class, state-of-the-art medical office building.
Upgraded exterior using sustainable and state-of-the-art materials for aesthetics and durability.
New glass-encased stairwell and enclosed stairwell.
Redesigned main lobby and second floor which maximized space utility and highlighted views of Mt. Diablo.
New Variable Refrigerant Flow (VRF) mechanical system.
New sprinkler system linked to full-building fire alarm system.
New roof, new LED light fixtures, new trash enclosures, new landscaping with high efficiency irrigation equipment.
Public restroom ADA upgrades.
LEASE AND SALE
Over the year-long renovation, Nearon invested approximately $3.0 million ($204/SF) to reposition Casa Muir into the premier Class A medical office building in the region. Prior to completing the renovation, Nearon executed a 15-year master lease with John Muir Health. The tenant subsequently exercised a purchase option and the property was sold in October 2017.