Transaction activity for MOBs has certainly slowed in 2023 due to higher interest rates and tighter lending requirements, but deals are still getting done. A bright spot still seems to be independent physician groups looking to monetize their real estate. When the time is right, the time is right. Whether the reason is a loan coming due, a succession plan for older providers, or a need for cash to expand, some groups still need to sell despite market uncertainty. Provider seller activity peaked in the middle of last year with an annual run rate of $3.3B and has come down somewhat to $2.5B in the first quarter of 2023. However, $2.5B is still significantly above the typical activity we’ve seen in previous years and is certainly not showing the impact seen across other seller types. (Overall annual MOB sales volume in 1Q was down almost 50% from the peak in 2Q22 if you omit the HR/HTA acquisition) Provider sellers now represent 20% of total transaction volume closed so far this year. Montecito Medical Real Estate has acquired more than 15 properties already this year from provider groups, most recently a 24,900 square foot building from Village Medical in Kentucky. Hammes acquired a portfolio earlier this year from Glazer Dermatology in Illinois, along with several other sale-leaseback transactions. Equity, Inc. closed on an acquisition of 4 properties in Kansas City from Sabates Eye Centers in April. Stay tuned to keep on top of this and other trends with Revista!
Source and Copyright: Revista. Data believed to be accurate but not guaranteed and is subject to future revision. Use of this data is permitted subject to terms and conditions detailed on data.revistamed.com/terms-of-use and with proper credit to Revista or Revistamed.com.
Source and Copyright: Revista. Data believed to be accurate but not guaranteed and is subject to future revision. Use of this data is permitted subject to terms and conditions detailed on data.revistamed.com/terms-of-use and with proper credit to Revista or Revistamed.com.
