Transactions: Sanders Trust buys large MOB in Indy

145,000 SQUARE FOOT METHODIST PROFESSIONAL CENTER 2 IS FULLY OCCUPIED

By John Mugford

Birmingham, Ala.-based Sanders Trust in June acquired the 145,000 square foot, 100 percent occupied Methodist Professional Center 2 (MPC2) in Indianapolis.

The five-story medical office building (MOB) is on the massive campus of the 802-bed Methodist Hospital, which is the state’s largest hospital and is part of the Clarian Health system. Clarian Health, which owns or is affiliated with 20 hospitals throughout Indiana, was the seller.

The price was not disclosed. The average sale price in the first quarter (Q1) of this year for MOBs in Indianapolis, according to statistics from New York-based Real Capital Analytics (RCA) Inc., was $274 per square foot (PSF). That average price was based on all sales recorded in the previous 12 months. Industry sources say prices have most likely fallen in recent months. If Sanders paid $200 PSF, the price would have been $29 million.

At the time of the sale, MPC2 was 100 percent leased and anchored by Clarian Health Partners and affiliates of the Indiana University School of Medicine, which is also part of Clarian.

According to a news release from Sanders, football legend Bart Starr, the company’s vice chairman, was heavily involved in discussions leading up to the acquisition of the property.

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