Compass Capital Investments has purchased RB Medical Plaza, a two-building office and medical property in San Diego, for $18,250,000. The acquisition price equates to approximately $241 per square foot for the 75,598-square-foot complex, which is currently configured as a medical and professional office asset.
The buyer plans to implement a condominium conversion strategy at the property, repositioning RB Medical Plaza into a collection of for-sale office and medical condo units. Compass Capital Investments intends to subdivide the existing improvements into 39 individual suites that can be sold to investors and owner-users over time.
According to the business plan, the condo sellout will be executed on a phased basis across a projected four-year hold period. This structure is designed to allow new ownership to gradually monetize the asset while marketing units to a mix of professional office and healthcare users seeking to own rather than lease space.
Brett Visintainer, principal of Compass Capital Investments, said the transaction is aligned with the firm's focus on assets that offer repositioning potential in markets viewed as durable. He noted that demand from medical and professional office users in San Diego, coupled with the flexibility of a condo disposition strategy, underpins the investment thesis for RB Medical Plaza.
On the marketing side, Colliers professionals Ryan Foley and Myles Martinez have been engaged to facilitate the sale of the individual office and medical condo units once they are formally established. Their role will center on bringing the units to market, identifying prospective buyers, and managing the sales process as the conversion advances.
Debt for the acquisition was coordinated and secured by Patrick O'Donnell with Colliers Debt and Structured Finance. While specific loan terms were not disclosed, the involvement of a dedicated debt and structured finance professional underscores that the capital stack for the transaction includes a financing component in addition to Compass Capital Investments' equity.
Overall, the RB Medical Plaza acquisition combines a traditional medical office investment with a planned condo conversion program, positioning the asset for a multi-year, value-add business plan in San Diego's office and healthcare landscape.
