GLOBAL HEALTHCARE SERVICES

NEWMARK

November 2019 MOB Transactions Top $2B With Portfolio Transactions On The Rise

Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Medical office building transactions totaled over $2 billion and 5.4 million square feet for the month of November. North Carolina had the most transactions with 10 (20.8% of total), followed by California with 7 (14.6% of total). The 48 total transactions evenly consisted of individual properties and portfolio transactions.

Portfolio transactions were up significantly from October, where they made up only 14% of the total volume. The 24 portfolio transactions totaled $1.76 billion and 4.5 million square feet. The largest transaction was Invesco Real Estate’s $850 million acquisition of a 35-property Welltower medical office portfolio.

While individual property transactions decreased 50% from last month, the average price per square foot was on the rise with a 37% increase. The largest of these transactions was the Tarzana Medical Center LLC’s purchase of the 167,000 square foot Tarzana Medical from Providence Health and Services of $65 million.

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Source: Real Capital Analytics, as of December 18, 2019

All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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