Stockdale Capital Aims To Triple MOB Portfolio Amid Investor Rush

Investor demand for medical office real estate is accelerating, driven by declining borrowing costs, evolving interest rate conditions, and sustained institutional interest.

“These factors are positioning the sector for increased transaction activity and potential asset appreciation,” said Andrew Saba, managing director of healthcare at Stockdale Capital Partners. “There is growing competitive interest in medical office real estate driven by debt pricing, interest rate fluctuations, and expanding institutional demand.”

Stockdale Capital, a prominent healthcare real estate investor, is actively pursuing plans to double—or potentially triple—its portfolio over the next 24 months. Saba noted that the influx of capital in recent years from firms such as IRA Capital, CypressWest, SG/Artemis, and Lincoln/PGIM reflects broad confidence in the U.S. healthcare real estate market.

“In sharp contrast to just a few years ago, when liquidity was constrained, we are now seeing a much higher level of lender participation, particularly for core and core-plus assets,” Saba said.

This heightened competition has resulted in more favorable lending conditions for investors targeting outpatient medical properties. Combined with increased investment partnerships, these trends are expected to support upward pressure on pricing. However, Saba cautioned that ongoing global instability—particularly geopolitical tensions—could introduce volatility

“If these issues persist, cap rates and debt costs could rise due to heightened near-term risk,” Saba said.

Stockdale is focusing its expansion on the 50 largest U.S. metropolitan areas, with particular emphasis on Sunbelt markets including Tampa, Charlotte, Phoenix, Dallas, Atlanta, and Nashville. Population growth and migration trends in these regions continue to reinforce long-term demand for healthcare services.

The firm’s strategy centers on acquiring outpatient medical facilities, ambulatory surgery centers, and higher-acuity assets such as inpatient rehabilitation facilities. It is also exploring opportunities to convert traditional office buildings into medical use in markets with limited healthcare space supply.

Investor interest in healthcare real estate has steadily strengthened since the Great Financial Crisis, when the sector demonstrated resilience. That stability was reinforced during the COVID-19 pandemic, as many outpatient facilities remained operational or quickly resumed activity, with tenants maintaining consistent performance.

Today, healthcare real estate is widely viewed as a defensive asset class with strong long-term fundamentals. An aging population and the continued shift toward outpatient care are expected to sustain demand well into the next decade.

Citing projections from the CMS Office of the Actuary and analysis from EY, Saba emphasized that demographic and structural trends will continue to drive growth in outpatient medical real estate for years to come.

Source: GlobeSt