CBRE Facilitates $13.35 Million Sale of Pasadena Medical Office Building to Meridian Property Company

CBRE has facilitated the $13.35 million sale of the California Medical Building, a 32,052-square-foot outpatient medical office property at 55 East California Blvd. in Pasadena, California, to Meridian Property Company, the firm announced Aug. 19.

CBRE's Mark Shaffer, Anthony DeLorenzo, Cody Chiarella, Ryan Burnett and Greg Nassir represented the seller, Young Properties, in the transaction. The deal implies a price of approximately $416 per square foot for the three-story building, which sits on nearly an acre immediately adjacent to Huntington Health Hospital in Pasadena's healthcare corridor.

Deal Background and Regulatory Milestone

Meridian entered escrow on the property in September 2025, but the transaction required a zoning text amendment from the City of Pasadena to establish medical office as a conforming use in the existing district. The city approved that amendment in June 2026, clearing a key regulatory hurdle and allowing the acquisition to proceed to closing. The resolution of that entitlement risk, combined with the concurrent execution of a long-term healthcare lease, enabled the parties to finalize the transaction.

The California Medical Building was constructed in 1983. At the time of marketing, the property was approximately 50% leased to three tenants, positioning it as a value-add opportunity for an incoming owner willing to invest in lease-up and physical improvements.

Huntington Physicians Anchor Lease Secured at Closing

Concurrent with the acquisition, Meridian finalized a 10-year lease with The Huntington Physicians, an affiliate of Huntington Health and Cedars-Sinai Health System, for the entire second floor of the property — approximately 10,619 square feet. The lease locks in a credit healthcare tenant and stabilizes a substantial portion of the building's rent roll ahead of Meridian's planned repositioning.

The building's location directly adjacent to Huntington Health and within Pasadena's established healthcare corridor was cited as a primary driver of investor interest. CBRE Research notes that demand for outpatient medical office properties continues to be supported by healthcare system expansion, an aging population and increased delivery of care in outpatient settings.

"This transaction underscores the continued investor demand for well-located outpatient medical assets in supply-constrained healthcare markets," said Mark Shaffer, senior vice president at CBRE. "The property's proximity to Huntington Hospital, strong fundamentals and value-add potential attracted significant interest from programmatic investors who recognized the opportunity to reposition this gateway to hospital campus asset."

Meridian's Capital Improvement Plans

Meridian Property Company plans to implement a comprehensive capital improvement program at the California Medical Building. Planned upgrades include lobby renovations, exterior façade enhancements, ADA upgrades, building systems modernization and updated signage. The improvements are intended to align the property fully with medical tenancy and enhance its long-term positioning within Pasadena's healthcare market.

The entitlement work completed prior to closing — amending the zoning to make medical office a conforming use — further supports Meridian's ability to attract and retain healthcare tenants over the long term.

Pasadena Medical Office Market Context

Pasadena is considered one of the premier medical office markets in the Los Angeles region, according to CBRE Research, benefiting from Huntington Hospital and other leading healthcare providers that drive tenant demand and support long-term occupancy fundamentals. The San Gabriel Valley submarket served by these providers continues to attract programmatic healthcare real estate investors seeking hospital-adjacent assets with repositioning potential.

The California Medical Building features an on-site pharmacy and direct access from an attached parking structure, attributes that reinforce its outpatient convenience orientation. With the Huntington Physicians lease in place and a capital improvement program underway, Meridian's acquisition represents a value-add strategy targeting lease-up of the remaining vacancy in a supply-constrained submarket.

Sources

CBRE Press Release: CBRE Facilitates $13.35 Million Sale of Pasadena Medical Office Building