After a two-year slump, at least 10 sizable portfolios are for sale, with more on the way
By John B. Mugford
Among the buildings offered in the Project Lotus Portfolio currently being marketed by Newmark is the 55,960 square foot EmergeOrtho Brunswick Surgery Center in Leland, N.C. (Photo courtesy of Newmark)
As medical outpatient building (MOB) sales slowed in 2023, one big change in the types of deals taking place was abundantly clear: Portfolio transactions started a significant decline at that point.
According to the Arnold, Md.-based healthcare real estate (HRE) research firm Revista, portfolio deals – including recapitalizations that brought in a new buyer or ownership partner – accounted for at least 40 percent of annual MOB sales volume from 2015 to 2022.
The trend peaked in 2022 when total MOB sales volume reached an all-time high of $25.83 million, and portfolio sales of $17.4 billion accounted for a record-breaking 67.4 percent of the yearly volume.
The strong streak of portfolio sales that had started in 2015 – and perhaps earlier, as that was the year Revista began tracking MOB sales – slowed considerably in 2023. That year, the overall MOB sales volume dropped to $8.17 billion, with portfolio deals accounting for only 31.2 percent, or $2.55 billion, of the total volume that year.
The year 2024 saw
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