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Feature Story: Mega deals, micro cap rates and new investment platforms

BOMA ‘Notable Transactions’ panel takes a closer look at some headline-grabbing deals

By John B. Mugford

The BOMA MOBs conference “Notable Transactions and Deals” panel included (from left to right): moderator Matthew Tarpley of H2C Securities, Jon Lewin of MedCraft Investment Partners, James Schmid III of Anchor Health Properties and Steven Smith of NexCore Group LLC. (HREI photo)

So far, the year 2021 – a year in which healthcare real estate (HRE) has been elevated to unprecedented heights in the eyes of investors – has undoubtedly produced some notable acquisitions and deals in the medical office building (MOB) sector.

Included were:
■ the sale of an MOB in California at what just a couple of years ago would’ve been considered an unthinkable capitalization (cap) rate of about 3 percent (as indicated by industry sources);
■ a mid-year, $620.4 million MOB and life science portfolio sale that, at the time, was the largest MOB portfolio deal of the year at $463 million for just the medical office properties; and
■ the formation of a new investment platform that includes one of the sector’s long-time firms and which expects to make $500 million of purchases in the next couple of years.

Executives with the firms involved in the above deals talked in more detail about the transactions during a well-attended panel session at BOMA International’s 2021 Medical Office Building + Healthcare Real Estate Conference held Nov. 1-3 at the Omni Dallas Hotel.

In addition to providing further details and strategies concerning those deals, the panelists also discussed other topics, such as

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