‘Alt’ investments can be attractive, but panelists tout the steadiness of MOBs
By John B. Mugford
A joint venture (JV) of Dallas-based Altera Fund Advisors and New York-based TPG Angelo Gordon & Co. recently partnered on the $108 million acquisition of a 10-MOB portfolio. During the ‘Big Hitter Investors’ panel discussion at the Revista conference in February, TPG’s Frank Virga explained why his firm is bullish about the MOB sector. (Photo courtesy of Newmark)
Plenty of folks involved in healthcare real estate (HRE) and medical outpatient buildings (MOBs) can make a strong case for investing in the sector’s various property types.
They can point to the strong fundamentals – record-setting occupancy rates nearing 93 percent and strong rent growth – and the demographic trends that will make MOBs and other HRE facilities a solid investment for years to come.
But what do some of the big money, private equity investors have to say about the sector compared to other real estate asset classes, including the growing-in-popularity alternatives, such as data centers, self-storage and others? Are they as enamored with HRE as those who already invest in the sector?
A panel discussion at the recent Revista Medical Real Estate Investment Forum at the PGA National Resort in Palm Beach Gardens, Fla., sought to answer that question. The session was titled “Big Hitter Investors and New Capital: Shaping the Future of Healthcare Real Estate in 2025.” The session was moderated by Troy Freeman, VP of real estate with Phoenix-based Banner Health, which operates 33 hospitals and is the largest employer in Arizona with 55,000 employees.
And what did the big hitter investors have to say?
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