NEWPORT BEACH, Calif. – A joint venture between Archer Property Partners ("Archer") and Real Estate Development Associates ("REDA") has acquired the 78,000-square-foot office building at 3300 Irvine Avenue, with plans to transform it into a state-of-the-art medical outpatient building (MOB). The partnership received unanimous approval from the Newport Beach Planning Commission in January 2025 and is now moving full speed ahead with the project.
Newport Irvine Medical Center, as it will be known, is a three-story building located just off State Route 73 in Newport Beach, California. Originally developed by The Koll Company in 1980, the building has long served as a general office space. However, with the continued decline in demand for traditional office space since the pandemic, the new ownership is converting the property to what it sees as its highest and best use: a modern medical office facility.
Strong Market Demand for Medical Space
"Newport Beach is one of the most sought-after locations for medical office space in Southern California," said R.J. Sommerdyke, principal at Archer. "Medical office vacancy in the city is exceptionally low — less than 5% — with a severe lack of large blocks of contiguous space. Currently, there is only one space larger than 10,000 square feet available citywide. Many existing MOBs are aging and no longer meet the needs of today's providers, making redevelopment projects like this essential."
In addition to these strong fundamentals, Newport Beach's medical office market is being reshaped by intensifying competition between major health systems. Hoag and UC Irvine Health are aggressively expanding their presence, each vying for market share in one of the region's most affluent healthcare markets. Hoag recently announced plans to expand its specialty care services, while UC Irvine is investing $1.3 billion in a new medical complex in Irvine. This race for expansion is driving heightened demand for high-quality, well-located medical office space, especially as private physician groups weigh their options between affiliating with these growing institutions or remaining independent in an increasingly consolidated healthcare landscape.
Rising rental rates further highlight the tight market conditions. Since the partnership first explored acquiring the property, medical office rental rates have increased by over 10%, driven by strong demand from healthcare providers. Newport Beach's three newest medical office developments — The Walk (anchored by MemorialCare), Newport Harbor Medical Plaza (anchored by USC Keck), and Newport Heights Medical Campus (anchored by UCI Health) — are all 100% leased, underscoring the intense demand and limited availability of premium medical space in the area.
A Well-Timed Investment
"We identified this property before the pandemic and immediately recognized its exceptional potential based on its location, size, and construction type," said Jason Krotts, principal at REDA. "We remained patient and ultimately acquired the building at the right price. Now, with medical space even tighter, this conversion is well-positioned for success."
The partnership's principals previously collaborated on the neighboring Newport Heights Medical Campus, a speculative ground-up development. Their success with that project reinforces their confidence in the demand for purpose-built medical facilities at this location.
Modernizing for the Future of Healthcare
Newport Irvine Medical Center will be comprehensively reimagined to support a wide range of healthcare providers, from specialty practices to wellness services.
Key upgrades include:
A New Three-Story Atrium - A central stairwell enhances accessibility, giving patients the option to use stairs or elevators based on their needs as well as visually opening the center of the building through volume and space.
Enhanced Common Areas and Elevators - Modernized finishes and touchless technology improve hygiene and patient experience.
Future-Proof Design - Offers long-term flexibility, enabling providers to adapt to changing medical technologies and patient needs.
"Medical office buildings serve a broad spectrum of patients — from MedSpa clients to post-surgical orthopedic patients," said Chad Manista, principal at REDA. "Our design prioritizes accessibility, ensuring patients have multiple options for navigating the building — an especially important feature in a post-COVID world."
"Medical practices tend to remain in one location for 10 to 20 years," added Kelly Blaes, COO at Archer. "Our goal is to ensure this building remains modern and relevant well into the future."
Project Timeline and Next Steps
The partnership has submitted plans to the city, with expected milestones as follows:
June 2025 – Groundbreaking on the new parking structure
September 2025 – Full building renovation begins
Spring 2026 – Project completion
Summer 2026 – Medical tenants begin operations
With healthcare demand in Newport Beach continuing to rise, this redevelopment represents a rare opportunity for medical providers to secure premium space in a highly constrained market. MedWest Realty, Inc., a leading healthcare real estate brokerage and advisory firm, has been retained to handle the leasing of Newport Irvine Medical Center. For more information, call 949.669.4230 or visit MedWestRealty.com.
About REDA:
Real Estate Development Associates (REDA) is a diversified investment firm focused on acquiring and developing office and industrial properties. REDA's strategy centers on value creation through transformation, targeting key market opportunities that offer the highest risk-adjusted returns. Visit redallc.com.
About Archer:
Archer Property Partners (Archer) is a healthcare real estate owner-operator focused on the western United States. Rather than being limited to specific metropolitan areas, Archer evaluates market fundamentals and healthcare demand to identify asymmetric risk-reward opportunities. Archer’s approach includes aligning with physician groups, surgery centers and hospital systems to create long-term value. Visit archerpropertypartners.com.
Media Contact
Company Name: MedWest Realty
Contact Person: Bryan McKenney
Email: Send Email
Phone: 949.669.4230
Address:18211 Leon Way, Suite 100
City: Tustin
State: California
Country: United States
Website: https://www.medwestrealty.com/
