Harrison Street Completes $340 Million Sale of Medical Office Building in San Jose to Santa Clara County

Harrison Street has completed the sale of a newly constructed medical office building in San Jose, California, to the County of Santa Clara for $340 million, the Chicago-based investment firm announced March 24, 2026. The real estate acquisition transfers ownership of a 230,506-square-foot, 10-story outpatient facility purpose-built to serve as a Valley Health Center site for Santa Clara Valley Healthcare, the county's public hospital and healthcare system.

Transaction Details: $340 Million Sale of Medical Office Building

The $340 million sale of the medical office building represents a price of approximately $1,475 per square foot. The property was newly constructed and developed by PMB, with Harrison Street Asset Management serving as the equity partner. No cap rate or financing details were disclosed in connection with the transaction.

The transaction provides the County with ownership of a critical outpatient facility that supports the delivery and expansion of essential healthcare services for the surrounding community, including pharmacy, diagnostic imaging, primary care, pediatrics, urgent care, OBGYN, behavioral health, and lab capabilities, according to the firm's announcement.

"The transaction with the County of Santa Clara underscores our ability to collaborate effectively with health systems, delivering mutually beneficial solutions," said Ben Mohns, Global Head of Asset Management – Real Estate at Harrison Street Asset Management. "We're proud to have delivered a modern, purpose-built healthcare facility for the community and to complete a transaction that underscores our ability to originate, develop, and exit complex, notable real estate in sectors within which we have a high level of conviction."

Property Overview and Mixed-Use Development Context

The medical office building includes a 600-space parking structure and is part of a broader seven-acre, transit-oriented, mixed-use development that incorporates 590 residential units. The firm described the project as a dense, integrated live-work environment anchored by critical healthcare infrastructure.

The facility was purpose-built to house a new Valley Health Center site, consolidating a broad range of outpatient services under one roof for Santa Clara Valley Healthcare's patient population.

PMB's Managing Partner and President Jake Rohe commented on the long-standing relationship between the two firms: "Harrison Street Asset Management has been a key part of PMB's evolution over the past 10 years. We greatly appreciate their trust in our people and our platform. We've developed phenomenal personal and professional relationships with their team and are excited to continue our partnership into the future."

Harrison Street's Healthcare Real Estate Track Record

Harrison Street Asset Management manages more than $108 billion in assets under management across real estate, infrastructure, and credit strategies. Since its inception, the firm has acquired 391 healthcare delivery properties across North America, representing a total investment of approximately $9.8 billion. The firm focuses on properties with leading design, technology, and energy standards, often working in direct partnership with health systems to deliver next-generation healthcare infrastructure for hospital-backed tenants.

Headquartered in Chicago with additional offices in Toronto and London, Harrison Street employs more than 600 professionals across North America, Europe, Asia, and the Middle East, and serves more than 1,100 institutional clients and over 300 registered investment advisors.

Sources: Harrison Street Asset Management press release, March 24, 2026. harrisonst.com