County to purchase medical building

Office plaza next to St. Louise Regional Hospital

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Photo: San Jose Medical Group

Santa Clara County took a step forward April 21 in purchasing a medical office building adjacent to St. Louise Regional Hospital in Gilroy.

The board of supervisors voted unanimously to approve the $7.2 million purchase agreement for 9360 No Name Uno from South Valley Medical Plaza, LLC. The 22,624-square-foot, two-story building was constructed in 1995.

Its 12 units include offices for El Camino Health, Quest Diagnostics and Ellis Eye and Laser Medical Center, among others. The current tenants will be retained under the new ownership, according to the purchase agreement.

Escrow is expected to close by July 31.

The supervisors’ action also included an additional $2.5 million for tenant improvements.

In a report, county facilities and fleet director Jeffrey Draper wrote that the building’s prime location next to the hospital would allow it to support St. Louise’s operations and meet the rising demand for health services in South County.

The county purchased St. Louise, as well as DePaul Urgent Care Center in Morgan Hill and O’Connor Hospital in San Jose, for $235 million in March 2019.

By the end of 2019, the county reported that a total of $90 million in equipment and facility improvements have occurred or are taking place throughout the three facilities.

The county repainted the exterior of St. Louise a lighter color, and installed new patient monitoring equipment for the emergency, intensive care, maternity and all acute care departments. Also, at St. Louise, 40 new hospital beds were purchased, and the hospital has new imaging and CT scanning equipment. A pharmacy remodel project construction is underway, the county reported.

On April 22, the county began using De Paul’s grounds for COVID-19 testing.

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