The Beverly Connection shopping complex opened on La Cienega Boulevard in 1989. (photo by Edwin Folven)

Cedars-Sinai Medical Center is expanding its real estate portfolio outside the main campus with a $270 million purchase of the Beverly Connection shopping center on La Cienega Boulevard.

The medical center purchased the 340,000-square-foot retail complex from New York-based Ashkenazy Acquisition Corporation, which owned the complex since 2014. The Beverly Connection currently houses approximately 15 retailers including Target, TJ Maxx, CVS Pharmacy, Nordstrom Rack, Men’s Wearhouse and Marshalls. Cedars-Sinai said no changes are anticipated in the near future at the Beverly Connection, and the stores will continue to operate.

“The strategic acquisition of the Beverly Connection will provide long-term options for Cedars-Sinai to revitalize our medical campus and provide the most advanced care to our patients and the community well into the next century,” said Dr. Peter L. Slavin, president and CEO of Cedars-Sinai Medical Center and Cedars-Sinai Health System. “We are excited by this opportunity to shape the future of health care in Los Angeles and leave an enduring mark on the city’s wellbeing for generations to come.”

The 10-acre Beverly Connection site is located at 100 N. La Cienega Blvd., a block east of the main 24-acre Cedars-Sinai campus at 8700 Beverly Blvd. It is separated from the main hospital campus by the Beverly Center, an unaffiliated shopping mall with a different owner. Cedars-Sinai owns or operates medical offices in multiple properties in close proximity to the main campus and the Beverly Connection, including the Mark Goodson Building at 444 S. San Vicente Blvd., the Susanne and Ervin Bard Pavilion at 127 S. San Vicente Blvd. and the Breast Health Services Building at 310 N. San Vicente Blvd.

Cedars-Sinai said the Beverly Connection purchase places the medical center in position to expand as health care needs evolve in Los Angeles, pushing beyond the limited size of the primary campus. Cedars-Sinai Medical Center opened in 1976 following a merger in the early 1960s between Cedars of Lebanon Hospital and Mount Sinai Hospital. The goal was to create a modern hospital to serve the city’s growing population. The medical center currently has more than 17,000 employees and approximately 3,000 physicians.

“We’re following leaders who did their homework and built an incredible medical center in the heart of Los Angeles,” said David Wrigley, executive vice president of finance and chief financial officer for Cedars-Sinai Health System. “The Beverly Connection is a prime location that deserves thoughtful planning to ensure we best meet the needs of Los Angeles and beyond for decades to come.”

The Beverly Connection opened in 1989 with a Ralphs supermarket, Cost Plus World Market and CVS Pharmacy as the primary anchor stores. The CVS is the only original store that remains.

Target opened in 2013. AMC formerly operated a six-screen theater complex at the site but closed in 2004. A Ross Dress for Less store at the Beverly Connection recently closed, and Saks announced in February that the Saks Off 5th location at the Beverly Connection is closing as part of the company’s bankruptcy restructuring. Other stores include a Jamba Juice, Corner Bakery Cafe, Verizon Wireless, Shoeber, J. Crew Factory and Old Navy.

The announcement about the purchase came as a surprise to some longtime residents, including Harald Hahn, president of the Burton Way Homeowners Association. Hahn said he has seen the shopping complex go through changes over the years, but did not expect it to potentially change into a medical center.

“I know Cedars is spreading, it keeps expanding into the neighborhood, but it does surprise me,” Hahn said. “Nothing has really lasted [at the Beverly Connection] over the years. It’s too bad. It’s a wonderful location, but there is a lot of competition.”