Expansion prompts mental health services firm to purchase San Jose office building

SAN JOSE — A mental health services firm has purchased a San Jose office building despite economic uncertainties in the market.

The firm, LGTC Group, specializes in outpatient mental health services. They acquired a medical office building in southwest San Jose that is currently occupied by units of Sutter Health, including hospice services.

The purchase price of the office building was $9 million, according to documents filed on Aug. 7.

The building, located at 4850 Union Avenue in San Jose, measures 17,200 square feet, as stated in county documents and a brochure from Cushman & Wakefield, a commercial real estate firm.

The deal was facilitated by brokers Erik Hallgrimsom and Clark Steele of Cushman & Wakefield, along with Geri Wong of Newmark.

“LGTC is expanding,” said Wong, a senior managing director at Newmark. “They specialize in eating disorders and mental health therapy.”

The financing for the property purchase was provided by JPMorgan Chase, with a total of $7.8 million in two loan packages.

LGTC Group plans to operate out of the newly acquired site, which is located in San Jose’s Little Branham – Rosswood neighborhood.

According to its website, LGTC is committed to providing integrated, evidence-based, empathetic mental health treatment for children, adolescents, adults, and their families.

Despite the economic uncertainties caused by the coronavirus outbreak, there is still demand for certain types of office buildings, particularly from medical companies.

Smaller office buildings are particularly popular with real estate investors and medical services firms.

“Buildings below 20,000 square feet are hard to find,” said Hallgrimson, a vice chairman at Cushman & Wakefield.

Currently, LGTC operates clinics near downtown San Jose and in Sunnyvale, Campbell, and Burlingame. They also have a residential facility in San Jose’s Willow Glen district.