MOB Sales Increase In 2025

Owners of healthcare real estate (HRE) facilities have growing reason for optimism as transaction activity begins to rebound after a prolonged slowdown over the past few years.

A primary driver of this renewed confidence is the return of a broader range of lenders to the market, many of whom are offering loans with more favorable rates and spreads than were available during the downturn.

While 2025 is unlikely to rank among the strongest years on record for medical outpatient building (MOB) sales, it is shaping up to be a rebound year, supported by several large portfolio transactions in the second half of the year.

“The year started with a significant return of lenders to the market,” said James A. Schmid III, chief investment officer and managing partner of Charlottesville, Va.-based Anchor Health Properties. “That resurgence in lending helped revive the capital markets, which then brought more equity back into transactions as the year progressed.”

Among the notable deals was the largest arm’s-length transaction in the sector’s history: the $7.2 billion acquisition of a majority interest in 296 MOBs totaling more than 18 million square feet. The purchase was made by a partnership between Chicago-based Remedy Medical Properties and Boca Raton, Fla.-based Kayne Anderson Real Estate, acquiring the portfolio from Toledo, Ohio-based Welltower Inc. The first two tranches closed in October and November, with additional tranches expected to close soon.

The GlobeSt. HRE Conference “A View from the Top” healthcare real estate owners panel discussion in Scottsdale, Ariz., included (from left to right): Joe Magliochetti of Remedy Medical Properties, James Schmid of Anchor Health Properties, moderator Murray W. Wolf of HREI™, Deeni Taylor of Landmark Healthcare Properties and John Pollock of Meridian. (PHOTO CREDIT: HREI)

“In the last 90 to 120 days,” Mr. Schmid added, “beyond the Remedy-Kayne transaction, we’ve seen a notable number of portfolio trades and large-volume deals that had been largely absent over the past three years.”

Mr. Schmid shared these insights during the recent GlobeSt. Healthcare Real Estate Conference in Scottsdale, Ariz., where he participated in a panel titled “A View from the Top: A Conversation with Healthcare Real Estate Owners.” Joining him on stage was Joe Magliochetti, CIO of Remedy Medical Properties, who noted that improved stability in both the debt and equity markets has contributed to the recent resurgence in MOB sales and is fueling cautious optimism for continued momentum.

Source: HREI