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Transactions: 2019 MOB sales exceed $11 billion for fifth straight year

Volume confirmed by both Revista and RCA; cap rates remained in the mid-6% range

By John B. Mugford

The largest MOB portfolio acquisition of the year was made by Welltower Inc. (NYSE: WELL): the $1.25 billion purchase of 55 MOBs from Orlando, Fla.-based CNL Healthcare Properties that closed in May. (Photo courtesy of Welltower)

Whether the coronavirus and its potential economic fallout will result in a pause in the medical office building (MOB) sales market in 2020 in pure speculation at this point. But what is certain is that 2019 turned out to be another strong year.

As a healthcare capital markets team with a national real estate firm put it, $10 billion in yearly MOB sales has become the “new normal.”

For the fifth straight year, the total volume surpassed that $10 billion threshold in 2019, with two of the MOB sector’s major data firms, Arnold, Md.-based Revista and New York-based Real Capital Analytics (RCA), both reporting total sales exceeded $11 billion.

Revista’s data, which includes all transactions of more than $2.5 million, shows that MOB sales were $11.42 billion in 2019, an 8 percent drop from 2018’s volume of $12.4 billion.

RCA data, which includes all MOB sales of more than $5 million, indicates that the total volume was $11.5 billion in 2019, representing a 3.6 percent increase over 2018.

As we’ve noted in years past, the two entities use differing methods and data sources when compiling their statistics.


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