GlobeSt. panel says a more receptive lending environment buoyed investment
Session also offered an inside look at the historic Welltower portfolio transaction
By John B. Mugford
The GlobeSt. HRE Conference “A View from the Top” healthcare real estate owners panel discussion in Scottsdale, Ariz., included (from left to right): Joe Magliochetti of Remedy Medical Properties, James Schmid of Anchor Health Properties, moderator Murray W. Wolf of HREI™, Deeni Taylor of Landmark Healthcare Properties and John Pollock of Meridian. (HREI™ photo)
As far as the owners of healthcare real estate (HRE) facilities are concerned, there are several reasons to be optimistic that the transaction market is seeing an uptick from what has been a rather frustrating slowdown during the past couple of years.
However, one of the main reasons for the optimism among HRE owners is that a wider range of lenders have returned to the market, with more of them offering loans at more favorable rates and spreads than during the market slowdown.
Although 2025 will not necessarily go down as one of the biggest years for medical outpatient building (MOB) sales, it could certainly be looked upon as a rebound year, fueled by several sizable portfolio sales in the second half.
“The year (2025) started off with a turn in bulk of lenders to the market, and I think the lenders led the resurgence in capital markets that continued into the second half of this year, with more equity coming back into the market, following the debt into transactions,” said James A. Schmid III, chief investment officer (CIO) and managing partner with one of the sector’s long-standing firms, Charlottesville, Va.-based Anchor Health Properties.
Those deals include the largest arm’s length deal in the history of the sector, the $7.2 billion, majority owner purchase of 296 MOBs with more than 18 million square feet of space by the partnership of Chicago-based Remedy Medical Properties and Boca Raton, Fla.-based Kayne Anderson Real Estate from Toledo, Ohio-based Welltower Inc. (NYSE: WELL). The first two tranches closed in October and November, with other tranches set to close soon.
“In the last 90 to 120 days,” Mr. Schmid added, “in addition to (Remedy-Kayne’s purchase), we’ve seen quite a number of portfolio trades, larger asset volume trades that have been absent the last three years.”
Mr. Schmid made his remarks as a panelist during the recent GlobeSt. Healthcare Real Estate Conference in Scottsdale, Ariz. He was part of a session titled, “A View from the Top: A Conversation with Healthcare (Real Estate) Owners.”
He was on the stage with one of the professionals involved in the historic $7.2 billion deal, Joe Magliochetti, CIO with Remedy, who said stability in the debt as well as the equity markets has led to a bit of a resurgence in MOB sales, perhaps with more optimism on the horizon.
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