Price not disclosed for the 737,347 s.f. first tranche of a 21-MOB deal
By John B. Mugford
By far the largest facility involved in the first tranche is the eight-story, 263,000 s.f. foot Novant HVI & Cancer Institute at 125 Queens Road in Charlotte, N.C. (Photo courtesy of Novant Health
In the current environment of rising costs and tighter operating spreads for health systems, perhaps growing number of such organizations are ready to start monetizing certain non-core real estate assets to raise capital.
For years, healthcare real estate (HRE) professionals have said that health systems will, and should, at some point in time, start to consider selling, or monetizing, medical outpatient buildings (MOBs) in order to invest the proceeds into more lucrative endeavors, such as adding new service lines or expanding them, hiring or acquiring of physicians and physician groups, and perhaps acquiring the latest in new equipment that can generate more revenues.
In the last year or so, Phoenix-based Banner Health, which operates more than 30 hospitals, has monetized a total of nine medical MOBs in multiple deals, generating $232.3 million in proceeds, according to information from HRE data firm Revista.
This week, HREI has learned that
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