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Transactions: What’s happening with MOB sales?

James A. Schmid III of Anchor Health Properties discusses the market

By John B. Mugford

Anytime you want straight answers about the current state of the medical office building (MOB) sector, especially in terms of acquisitions, a good person to ask is James A. Schmid III, the chief investment officer and managing partner with long-time healthcare real estate (HRE) firm Anchor Health Properties.

Mr. Schmid certainly knows the MOB acquisitions market, as he has led Anchor’s nearly $3 billion worth of new investments since joining the firm in 2016.

During the five years prior to his joining Anchor, Mr. Schmid, who works out of the firm’s office in Media, outside of Philadelphia, helped build and lead the investment platform that made acquisitions topping $1.5 billion at CNL Healthcare Properties, a non-traded real estate investment trust (REIT).

As HREI™ reaches out to Mr. Schmid for his take on the current state of the MOB acquisitions sector, the sales volume is in quite a slump. The first quarter (Q1) of 2023 saw only $1.6 billion in sales, a 73 percent decrease from the $5.9 billion of transaction volume posted a year earlier, in Q1 2022, according to RevistaMed data. It was also the lowest first-quarter volume in the past nine years.

It looks as if the slower sales volume continued into Q2 of this year. According to very preliminary results from RevistaMed, the sales volume between April 1 and June 30 was

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