Orange County California Medical Office Buildings have been a prized possession of real estate investors for several years. In fact, over the past several years, investors have acquired over $1.5 Billion of MOBs in Orange County. During that time, cap rates have averaged 5.6 to 5.85+ and the Price per SF has been $469/SF. At the epicenter of this activity is a group of MOBs around Mission Hospital in Mission Viejo.
The Mission Medical Center MOBs 1, 2 and 3 as well as the Mission Medical Tower were recently acquired by Healthcare Trust of America (NYSE: HTA). HTA recently announced the deal which was valued at $150 million for the 4 MOBS. HTA said the MOBs are fully leased. Space was recently being marketed in MOBS 1-3 at approximately $25/SF NNN while the Mission Medical Center had space available at just over $29/SF NNN.
At $150 million, the price works out to $573 per SF. This equates to a 26% price increase from when they last sold 2 years ago. These MOBs were acquired in a reverse monetization by St. Josephs back in 2014. They purchased the MOBs from Lasalle Investment Management for $453 per SF.