Douglas Emmett’s $260 million acquisition of the Bedford Collection signals a shift for Beverly Hills’ Golden Triangle, where medical offices now rival luxury retail as a prime driver in the market.
The six‑building, 246,000‑square‑foot outpatient property along Bedford Drive consolidates roughly 80 percent of the block under one owner, giving Douglas Emmett control of one‑third of the city’s medical office inventory, CoStar News reported. In a market known for scarcity and prestige, the purchase underscores how medical space has become a strategic asset, in this case anchored by an affluent clientele and proximity to major hospital systems.
The Bedford Collection is 95 percent leased to about 120 tenants, including specialists such as Beverly Hills Plastic Surgery Center and concierge physicians serving one of the wealthiest patient populations in the country. Street‑level tenants — beauty salons, pharmacies and spas — reinforce the Golden Triangle’s hybrid identity as both a wellness and luxury corridor.
Santa Monica-based Douglas Emmett, led by CEO Jordan Kaplan, described the acquisition as a “rare opportunity” to secure high‑value health care property in one of the world’s most constrained markets.
The landlord, which owns multiple large office complexes in the greater L.A. market, has struggled with vacancy along with the rest of the market. Last year, publicly traded Douglas Emmett paid $131 million for Murdock Plaza on Wilshire Boulevard. The deal, structured through a joint venture with $150 million in equity and $130 million in secured debt, reflects continued lender confidence in well‑leased medical properties.
Los Angeles has seen a surge in health care investment with medical office vacancies holding near 2.3 percent for a decade, far below overall office space – which had a county vacancy average of 25.5 percent, according to CBRE quarter one data. The Bedford Collection is located within two miles of the Cedars-Sinai Medical Center and UCLA Ronald Reagan Medical Center.
Cedars‑Sinai’s $270 million purchase of the Beverly Connection retail center and Atria Health Institute’s lease of an entire six‑story building in Beverly Hills illustrate the health care expansion trend.
According to CoStar, health care is now the only Los Angeles office sector showing sustained growth, fueled by an aging population and demand for outpatient care. For Douglas Emmett, the acquisition secures long‑term pricing power in a corridor where demand perpetually outstrips supply.
– Joel Russell
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