A medical office portfolio sale is the latest sign of how healthcare is becoming a prized commodity among investors in Beverly Hills’ Golden Triangle, where luxury shops and concierge medicine share buildings.
Douglas Emmett paid $260 million for the Bedford Collection, a 246,000-square-foot outpatient medical portfolio of six lots along Bedford Drive, consolidating roughly 80% of the block under a single owner in one of Los Angeles’ most supply-constrained areas.
The Bedford Collection is 95% leased to roughly 120 tenants, including high-end specialists like Beverly Hills Plastic Surgery Center and concierge physicians who cater to one of the wealthiest patient populations in the country. Street-level tenants include beauty salons, pharmacies and spas.
The complex "of high-value healthcare real estate in one of the world’s most constrained premier markets” marked a "rare" buying opportunity for Douglas Emmett, the company said in its announcement.
The deal, one of the largest real estate transactions for Los Angeles County in the past year, adds to several high-profile healthcare plays in one of the country’s priciest urban real estate markets.
It comes about a month after Cedars-Sinai Medical Center shelled out $270 million for the Beverly Connection retail center about 2 miles from the Bedford Collection. Securing land ensures the hospital system can continue expanding medical services, research and specialized care in Beverly Hills, a primary medical hub for affluent Angelenos.
Meanwhile, concierge healthcare provider Atria Health Institute recently took an entire six‑story office building in the Beverly Hills Triangle for its first West Coast location.
That demand has helped keep Beverly Hills asking office rents among the highest in Los Angeles, CoStar data shows.
"The healthcare sector is the only industry in Los Angeles that has demonstrated substantial growth and expansion in recent years and will only continue to grow due to our aging population," said Catherine Yeh, CoStar director of market analytics for Los Angeles.
Across Los Angeles, medical office has outperformed other property types, with vacancy staying within a tight 2.3% band over the past decade versus traditional office swinging as high as 16% to 17%, according to CoStar data.
Healthy medical real estate
This deal with seller Toledo-based REIT Welltower gives Douglas Emmett long-term pricing power in a corridor where demand consistently outstrips available space.
The acquisition was structured through a newly formed joint venture with $150 million in equity, alongside $130 million in secured debt, underscoring continued lender appetite for well-leased medical office properties in top-tier locations.
The properties sit within 2 miles of both Cedars-Sinai and Ronald Reagan UCLA Medical Center, reinforcing the area’s role as a hub for outpatient care tied to major hospital systems.
With the acquisition, Douglas Emmett now controls about one-third of the medical office inventory in the Golden Triangle, alongside a broader Beverly Hills portfolio totaling 2.4 million square feet across 16 buildings.
That concentration mirrors a broader industry trend, as institutional investors increasingly target medical office properties for their stable tenancy, long lease terms and insulation from remote-work pressures that have weighed on traditional office buildings.
Across the country, investment in medical outpatient buildings totaled over $14 billion last year, up 34% year over year, according to Cushman & Wakefield.
The Bedford portfolio sale helped fuel a 35% increase in office property sales in Beverly Hills over the past year, according to CoStar data — a rebound that reflects strengthening sentiment in a market many brokers say has stabilized faster than most of Los Angeles.