A $260 million deal that closed April 15 gave a Santa Monica-based real estate firm control of roughly one-third of Beverly Hills' Golden Triangle medical office inventory, reshaping the neighborhood's commercial landscape in what CoStar described as one of the largest real estate transactions in Los Angeles County over the past year.
Douglas Emmett, Inc. (NYSE: DEI) acquired the Bedford Collection, a five-building, 246,000-square-foot outpatient medical portfolio spanning approximately 80% of the 400 block of North Bedford Drive. The price worked out to roughly $1,057 per square foot, according to Traded.co records.
The seller was Toledo, Ohio-based Welltower Inc. It is pivoting away from medical office properties toward senior housing.
What's in the portfolio
The Bedford Collection is 95% leased to about 120 tenants, including Beverly Hills Plastic Surgery Center and concierge physicians. Street-level spaces house beauty salons, pharmacies and spas. The properties sit less than two miles from both Cedars-Sinai Medical Center and Ronald Reagan UCLA Medical Center.
Douglas Emmett CEO Jordan Kaplan described the acquisition during the company's Aug. 5 earnings call as "an extremely well leased block of prime Beverly Hills medical office properties."
How the deal was structured
Douglas Emmett structured the purchase through a newly formed joint venture capitalized with $150 million in equity, according to the company's press release. Douglas Emmett contributed 13% of the equity and manages the partnership. The remaining $130 million came from a secured, interest-only loan maturing in April 2031 at a rate of SOFR plus 1.70%.
With the Bedford Collection, Douglas Emmett now owns 16 buildings totaling 2.4 million square feet in Beverly Hills, representing about 33% of the city's Class A office inventory.
Healthcare real estate is booming
The Bedford deal reflects a broader wave of healthcare investment on the Westside. Greater Los Angeles ranked first nationwide for healthcare real estate sales in the second quarter of 2026 with $285 million in transaction volume, according to an Avison Young market report.
Medical office vacancy across Los Angeles has held within a 2.3% band over the past decade, CoStar data shows, while traditional office vacancy has swung as high as 16% to 17%.
"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," Catherine Yeh, CoStar's director of market analytics for Los Angeles, told CoStar News in April.
The Bedford portfolio sale helped fuel a 35% increase in office property sales in Beverly Hills over the past year, per CoStar. About a month before the Douglas Emmett deal, Cedars-Sinai paid $270 million for the Beverly Connection retail center to expand medical services nearby.
What comes next
On the Aug. 5 earnings call, Kaplan said joint venture partners are "continuing to ask what is next" regarding future Beverly Hills acquisitions. No specific follow-up transaction has been announced.
