MOB investment firm has partnered with Heitman and is excited about 2025
By John B. Mugford
Ben Barr
The past couple of years have certainly seen a significant slowdown in the sales volume of medical outpatient buildings (MOBs) nationwide.
And yet, even though 2023 and 2024 have proven to be a difficult time to find deals for many would-be MOB buyers, Cleveland-based Woodside Health, a private investor focused on the healthcare real estate (HRE) sector, has remained quite active.
In fact, 2024 will likely end up being the firm’s most active year since it was founded in 2008, as it expects to end the 12-month period with $250 million or more in HRE transactions. That includes acquisitions of about $150 million, with one deal likely to close before the end of the year, and dispositions, exits and recapitalizations of about $134 million, which includes a recapitalization of a portfolio to seed a new investment fund with its institutional investment partner, Chicago-based Heitman.
“We’ve managed to stay quite active this year, even with the noise in the capital markets and an environment that I think most people in the sector will agree has been, and still is, fairly choppy,” says Ben Barr, principal and managing partner with Woodside. He notes that the firm is optimistic that there will be a turnaround in 2025 and that the capital markets will probably stabilize, the bid-ask spread for deals will tighten and, as a result, more owners are likely to put assets on the market.
Mr. Barr adds that
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