Colorado, Arizona Medical Office Building Portfolio Trades For $56 Million

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Centum Health Properties has sold a 180,000-square-foot medical office building portfolio encompassing three properties in Greater Phoenix, and another asset in the Denver market.

Wentworth Healthcare Properties, the health-care arm of Wentworth Property Co., purchased the four properties for a combined $56 million. CBRE represented the seller in the transaction.

The largest property in the portfolio is the 79,624-square-foot Princess Medical Center at 8573-8575 E. Princess Drive in Scottsdale, Ariz. The two-story Class A facility built in 2003 traded for $25.1 million, Maricopa County records show.

Wentworth paid $15.5 million for Anthem Medical Plaza in Anthem, Ariz., a property totaling 49,847 square feet. The 1997-built low-rise is situated at 3618-3654 W. Anthem Way. Rounding out the Greater Phoenix properties is the 39,168-square-foot Sun Lakes Medical Center in Sun Lakes, Ariz. The Class B facility at 10440 E. Riggs Road changed ownership for nearly $8.7 million, according to public documents.

Based on Jefferson County records, Centum Health Properties received approximately $6.8 million for Wadsworth Medical Office Building in Littleton, Colo. Encompassing 20,350 square feet, the 2005-built property sits on more than 3 acres at 5920 S. Estes St.

Aggressive Expansion

“Wentworth Healthcare Properties intends to continue to invest significantly in core-plus and value-add medical office facilities as well as development projects across Western U.S,” Jason Meszaros, Managing Director of Wentworth Healthcare Properties, said in prepared remarks.

Most recently, the company announced plans to develop Goodyear Medical, a 57,000-square-foot project in Goodyear, Ariz.

The four value-add properties in Arizona and Colorado were roughly 80 percent leased at the time of the sale, with vacancies at the three Greater Phoenix facilities. Capital One provided acquisition financing for the four-property transaction.

The new owner appointed Kidder Mathews to market Princess Medical Center, and chose JLL to lease Sun Lakes Medical Center and Anthem Medical Plaza.

 

Source: Commercial Property Executive

2021 To Break Medical Office Building Sales Record

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Total medical office building (MOB) sales volume last year is likely to surpass $16 billion, breaking the previous record of $15.6 billion, set in 2015.

Final medical office building (MOB) sales for 2021 are still being tabulated, but preliminary data from Revista suggests that last year’s total volume will surpass $16 billon, breaking the previous record of $15.6 billion in MOB sales recorded in 2015. (IMAGE CREDIT: Revista)

That’s according to Arnold, Md.-based Revista, a healthcare real estate (HRE) data firm that shared its preliminary 2021 findings during its Fourth Quarter (4Q) 2021 Subscriber Webcast Jan. 25.

As of late January, Revista Principal Elisa Infante Freeman told listeners, the MOB sales volume for 2021 stood at $15.3 billion. However, that figure was based on preliminary data, meaning Revista had not yet gathered or compiled all of the transactions that took place late in the year.

“My guess is, by the time we release final stats in March, we’ll be at (a record MOB volume for 2021),” Ms. Freeman said during the webcast, adding that the firm will provide more detailed data during its upcoming “2022 Medical Real Estate Investment Forum,” which will be held in Coronado, Calif., outside of San Diego, March 2-4.

Regardless of the final tally, last year’s record-setting level of MOB sales activity also blew away the total for 2020 – which wasn’t a bad year, either. Despite the COVID-19 pandemic, the 2020 total came in at $11.7 million, keeping intact a streak of seven straight years (now eight) with the annual volume topping $11 billion.

The relatively strong sales volume in 2020, followed by an increase of more than 30 percent in 2021, add to the growing heap of evidence that MOBs are a crisis-resistant, safe harbor investment that can withstand difficult times, including recessions and pandemics. It’s a thesis that veteran MOB investors have embraced for many years, and one that has more recently attracted many new entrants to the space.

 

Source: HREI

Three Health Care Investment Trends For 2022

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The healthcare sector was one of the beneficiaries of the pandemic, and the industry is rapidly growing.

As investors plan for 2022, Meridian CEO John Pollock is predicting three trends will drive activity healthcare real estate.

1. More Outpatient Facilities

The transition to outpatient facilities has been an ongoing trend over the last decade, and it accelerated during the pandemic.

“Services are migrating away from the acute care centers to more convenient outpatient centers” Pollock tells GlobeSt.com. “Ambulatory outpatient care facilities have been at the center of Meridian’s focus for years and we expect this trend to continue to accelerate and translate into more opportunities for investors, developers, and providers alike.”

2. Telehealth Gaining Momentum

Telehealth is the second major trend that Pollock sees gaining momentum this year.

“Everyone has read about the rapid adoption of telehealth during the pandemic. It certainly spiked in 2020, and while it has since leveled off, it is still an integral and effective means to deliver care,” Pollack says. “The physical manifestation of that trend is creating more flexible exam and telehealth rooms.”

The telehealth trend supports better patient care, especially as providers rush to build outpatient ambulatory facilities.

“We have seen an increasing need for outpatient ambulatory care centers either de novo or through renovations that require heavy lifting to meet the new care delivery models,” says Pollock. “A huge benefit of telehealth is providing greater access to care. During the pandemic, it provided a vital access point to care when physical appointments were not practical. Telehealth also allows patients in rural settings to have access to a specialist from the urban centers.”

3. A Focus On Behavioral Health

Finally, health care providers will increase focus on behavioral health.

“We are seeing numerous requirements,” says Pollock. “The stress, isolation and loss caused by the pandemic was the final straw and it is now widely known that behavioral health conditions impact one in four Americans.”

It isn’t only cultural changes that are driving activity in the behavioral space, but institutional investors are also backing these projects.

“Institutional investors have warmed up to having behavioral health tenants in their buildings and portfolios, and we have even seen cap rates move toward traditional medical office building valuations,” says Pollock. “It’s very exciting to be a part of creating more access to these much-needed services in our communities.”

 

Source: BenefitsPRO