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Transactions: High demand: MOB sells for a record $1,367 PSF, sub-4% cap

137 signed NDAs, 13 bid and a USC-leased Newport Beach, Calif., facility sold for $41 million

By John B. Mugford

Newport Harbor Medical Plaza, a newly completed, 29,991 square foot MOB at 330 Old Newport Blvd. in Newport Beach, recently sold for $41 million, or about $1,367 per square foot (PSF). (Photo courtesy of Newmark)

Prices for medical office buildings (MOBs) occupied by strong tenants, including credit-rated health systems, continue to increase, in some cases rising to levels unimaginable not too long ago.

A case in point can be found in Newport Beach, where the Newport Harbor Medical Plaza, a newly completed, 29,991 square foot MOB at 330 Old Newport Blvd. that is fully leased to Keck Medicine of the University of Southern California (USC), recently sold for $41 million, or about $1,367 per square foot (PSF).

That’s the highest PSF ever paid for an MOB in Orange County, according to a sales brokerage team with Newmark, part of Newmark Knight Frank (NYSE: NMRK), that represented the seller.

The real shocker about the sale, however, is

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