Companies & People: Amid the ‘nightmare,’ MOBs are hanging tough

Five questions with Darryl E. Freling of MedProperties Realty Advisors

By John B. Mugford

Times are tough for so many people and so many businesses amid this crisis, and yet, despite its share of difficulties, the medical office building (MOB) sector is hanging in there.

And while professionals involved in the medical office space express their heartfelt concerns for those facing difficulties during these hard times, as well as touting the work of those on the “front lines” of the COVID-19 pandemic, they also note they are thankful to be involved in the MOB sector, for the most part because of its resiliency.

One such professional is Darryl E. Freling, managing principal and co-founder – along with Roman J. Kupchynsky II – of Dallas-based MedProperties Realty Advisors LLC. The HRE investment firm and fund manager has had plenty of success and made quite an impact on the sector since its founding in 2007, as it has acquired and/or been a development partner for more than 100 projects with more than 4 million square feet of space in 23 states. Through its closed-end funds, the firm has invested more than $1.2 billion.

During a “Five Questions” interview with Mr. Freling May 22, he said the firm has, through April and May, collected “91 percent of our rents. I mean, that’s extraordinary if you know what’s going on, when you have retail (landlords) collecting 50 percent.”

Because of this, he added that despite the “devastating” effects the pandemic has had on the overall economy, “we remain pretty bullish on healthcare real estate.”

Here’s the interview:

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