Exclusive new report now available from Revista tracked deals involving 629 properties. Revista also announces five new advisory board members and two new presenting partners.
ANNAPOLIS, Md., March 26, 2015 – U.S. medical real estate sales transactions totaled more than $11.3 billion in 2014, according to an exclusive new report now available only from Revista.
The Annapolis-based healthcare real estate (HRE) data firm also announced that it has five new board members and two new Gold-Level Partners: Harrison Street Real Estate Capital and Zeustra Real Estate Investment Services.
MOB transactions still going strong, yields compressed, prices per square foot largely unchanged
Hospitals, health systems, physician practice groups and healthcare real estate professionals now have a comprehensive new tool for tracking and analyzing the medical real estate transactions market,” says Mike Hargrave, one of Revista’s founding principals.
Available exclusively from Revista, the “Medical Real Estate Transactions Report” for 2014 includes not only all medical office buildings (MOBs) sales, but also real estate transactions involving hospitals, medical condos, office with medical, and retail with medical. Revista captured data for sales of well-qualified properties with reported square foot information and pricing of more than $2 million.
“Medical office building sales continued to dominate the market,” Mr. Hargrave noted, adding that Revista identified 518 MOB sales totaling more than $7.1 billion, accounting for 63 percent of the dollar volume, followed by hospitals (18 percent) and other medical (19 percent).
Key 2014 Transactions Stats by Property Type
Medical Office Building (MOB)
Number of Properties: 518
Total SF: 25,096033
Total Volume: $7,123,945,842
Avg. Price per Property: $14,658,325
Avg. Price per SF: $291
Avg. Yield (%): 6.9
Hospital
Number of Properties: 45
Total SF: 7,137,928
Total Volume: $2,032,389,201
Avg. Price per Property: $49,570,468
Avg. Price per SF: $397
Avg. Yield (%): 7.5
Medical Other
Number of Properties: 66
Total SF: 6,122,035
Total Volume: $2,155,713,540
Avg. Price per Property: $40,673,840
Avg. Price per SF: $237
Avg. Yield (%): 7.7
Total/Aggregate
Number of Properties: 629
Total SF: 38,355,996
Total Volume: $11,312,048,584
Avg. Price per Property: $19,503,532
Avg. Price per SF: $294
Avg. Yield (%): 6.9
The Revista “Medical Real Estate Transactions Report” also found:
● On average, MOB yields compressed from 7.0 percent the beginning of 2014 to 6.6 percent by the end of the year, with an overall average of 6.8 percent. On-campus MOBs had the lowest average yield (6.3 percent) while unaffiliated and off-campus MOBs had the highest (7.0 percent).
● Hospital and MOB prices per square foot (PSF) were generally trendless during 2014, with hospital sale prices averaging $397 PSF and MOB sales prices averaging $291 PSF.
● The largest MOB buyer by volume was NorthStar Healthcare REIT, by virtue of its December 2014 purchase of Griffin-American Healthcare REIT II.
● California, the most populous state, had the highest MOB sales volume, with just under $933 million, at an average PSF for MOBs of $366.
The Revista report also reflects key trends for MOBs by type (all MOBs, on-campus, affiliated and non-affiliated); key MOB statistics by investor type (Hospital/Health System, Private Investor, Provider Groups and REITs); the top 10 MOB Buyers; top 10 MOB states; and top 10 metro areas for MOB sales. An add-on report is available with individual transaction details included in the report.
To access the 2014 “Medical Real Estate Transactions Report,” please visit RevistaMed.com/Pages/National-Transactions-Report.
New Partners, Advisory Board Members Join Revista
Revista announced the addition of two new Gold Partners: Harrison Street Real Estate Capital and Zeustra Real Estate Investment Services.
Harrison Street strives to be one of the leading real estate investment management firms by offering investment products across both private and public real estate segments. The firm’s goal is to create a series of differentiated investment products across multiple risk/return platforms. Harrison Street’s 60+ person team is headquartered in Chicago. Currently, the firm and its affiliates manage about $7.5 billion in property assets and publicly traded securities through multiple investment vehicles on behalf of pension funds, endowments, insurance companies, foundations and family offices.
Zeustra Real Estate Investment Services is a best-in-class real estate investment advisory firm with a core focus on healthcare that offers its clients sophisticated and specialized investment solutions across all major asset types. The company designs tailored decision-making models for its clients in order to minimize risk and maximize returns, giving them a comparative advantage in the global marketplace.
The two firms join existing Revista presenting partners; Healthcare Trust of America Inc. (HTA), Health Care REIT Inc., Hammes Partners, Raymond James, HealthTrust LLC, and Jones Lang LaSalle.
In addition, Revista announced four new advisory board members: Mark Burkemper, David Elkins, Erik Gainor and Courtney Hanfland, as well as the recent new appointment of Robert A. Milligan to represent Healthcare Trust of America Inc. (HTA) on the advisory board.
Mr. Burkemper serves as Senior Vice President of Harrison Street. Mr. Elkins serves as Chief Asset Officer of Real Estate and Construction for Providence Health & Services. Mr. Gainor is Principal/CEO of Zeustra. Ms. Hanfland is National Director, Real Estate Transactions for Catholic Health Initiatives. Mr. Milligan serves as CFO, Treasurer & Secretary of HTA.
For more information on Revista’s full advisory board, please visit RevistaMed.com/Advisory-board.
About Revista
Revista serves as a valuable, one-stop industry resource for healthcare and real estate organizations to obtain comprehensive, unbiased and medical real estate industry-focused data; healthcare industry statistics, market reports and other resources; as well as to connect with other professionals in educational networking events.
For more information, please visit www.RevistaMed.com.
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