GLOBAL HEALTHCARE SERVICES

NEWMARK KNIGHT FRANK

$273.3M in MOB Transactions Closed in April 2020

Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Thirty-eight medical office buildings transactions closed in the month of April, totaling $273.3 million and 1.5 million square feet. California had the most medical office building transactions with six (15.8% of total); North Carolina and Illinois had the second largest number of sales with four transactions each. The largest individual property transaction was the $74.5 million, 410,000-square-foot acquisition by Taurus in Massachusetts. There were three different buyers–IRA Capital, Cone Health and NantWorks–for the three portfolio transactions that closed in April. The largest of the portfolio transactions was NantWorks’ acquisition of five MOBs in Los Angeles from Verity Health System, according to Real Capital Analytics.

As we predicted in our 1Q20 Healthcare Capital Markets Report, the industry is experiencing a slight uptick in cap rates and fewer transactions because of near-term uncertainty due to the COVID-19 pandemic. As with other recessions, we anticipate the healthcare real estate industry to rebound rapidly as investors look to secure stable investments in the months ahead.

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Source: Real Capital Analytics, as of May 26, 2020

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