SAN DIEGO, June 18, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced that John Smelter, a senior director of the firm’s Healthcare Real Estate Group in San Diego, negotiated the sale of five medical office properties in locations across the country during the second quarter of 2014.
“After a record-setting year in 2013 for medical office sales, many analysts predicted a slowdown in 2014,” says Smelter. “While there has been a lessening in the volume of medical office property sales, especially between the record-setting fourth quarter of 2013 and the first quarter of 2014, demand for the product remains high and pricing continues to be strong.”
“Changes in healthcare policy and demographic shifts will keep boosting demand for medical office space,” adds Smelter, “although investors must keep in mind that healthcare providers have to innovate in order to improve efficiency and profitability in the face of rising costs, an intensifying physician shortage, reduced reimbursements and elevated accountability.”
Among Smelter’s sales in the second quarter were an on-campus single-tenant medical office building, an on-campus value-add two- property portfolio and a single-tenant two-property medical office portfolio, all of which closed in separate transactions.
In Berwyn, Ill., Smelter arranged the sale of the 42,779-square-foot Berwyn Medical Center for $11,000,000. This single-tenant property, leased to Tenet Healthcare Corp., is situated directly across from the Tenet MacNeal Hospital.
In Wormleysburg and Carlisle, Pa., he arranged the sale of the 40,485-square-foot, two-building, single-tenant PinnacleHealth Portfolio for the buyer, Physicians Realty Trust, for $9,208,000. Benjamin Appel, an associate director of Marcus & Millichap’s National Office and Industrial Properties Group (NOIPG), and Erik Gainor, an NOIPG director, both in the firm’s Philadelphia office, acted on behalf of the seller as list-side advisors.
In San Diego, Calif., Smelter arranged the $14,250,000 sale of the 107,330-square-foot two-building Alvarado Portfolio, which was jointly owned by ScanlanKemperBard Companies and the Praedium Group, to Reddy Development.
At the end of the first quarter, Smelter also represented ScanlanKemperBard and the Praedium Group in the sale of the 38,315-square-foot Lakewood Medical Building in Lakewood, Calif., for $5,025,000 to a private party.
Michael Lawrence, a senior vice president investments in Marcus & Millichap’s Newport Beach office, provided additional representation on the Alvarado Portfolio and Lakewood Medical Building transactions. First vice president John Przybyla is the firm’s broker of record in Illinois.
About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 6,600 transactions in 2013 with a value of approximately $24 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com
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