Bolstered by a big portfolio sale, quarter’s MOB volume hit $3.33 billion
By John B. Mugford
The 73,238 square foot Adena Health Pavilion at 4437 Highway 159 in Chillicothe, Ohio, was part of Starwood Property Trust’s acquisition of a 35-building portfolio from NorthStar Realty Finance for $796.6 million to close out Q4 2016, bolstering the quarter’s total MOB sales volume to $3.33 billion.
(Photo courtesy of Cornerstone Cos. Inc.)
Commercial real estate brokers are known to say that sales of medical office buildings (MOBs), as well as other types of commercial real estate, typically pick up in the final quarter of most years.
That was certainly the case for the fourth quarter (Q4) of 2016, although the quarterly total was bolstered by a huge deal – the biggest arm’s length MOB transaction not involving the sale of a whole company since real estate researcher Real Capital Analytics (RCA) Inc. began keeping data for the sector in 2001.
For Q4 2016, MOB sales totaled $3.33 billion, according to RCA’s data, topping off a year that saw just more than $10 billion in sales in total. (For more details on year-end 2016 MOB sales data, please see “Down, but just a bit” in the 2017 HREI™ Resource Guide.)
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