I’ve received a number of questions about MOB construction activity in tertiary markets and am curious about this area myself! Most of the information that circulates is about major metro areas – but what about the rest of the country?
SABRA Healthcare REIT (NYSE: SBRA) reported in its quarterly earnings that Forest Park Medical Center (FPMC) in Frisco is having trouble paying rent as of June, 2015.
HCP, Inc. (NYSE: HCP), disclosed with the reporting of second quarter, 2015 earnings that it had purchased a portfolio of 11 on campus medical office buildings from Memorial Hermann Health System.
The interesting things about this deal, however, are the pricing and location of these assets. The total value of the deal was $449M for the 8 properties comprising 437,895 square feet. This works out to $1,025 per square foot which makes it the highest priced publicly announced MOB deal (per SF) this year.
A 51,000 square foot medical office building in Oakdale, California traded hands in late July. The Oakdale Medical Plaza was developed in 2007 by GL Bruno in association with Oak Valley Hospital. The MOB sold for $12 million or $235 per square foot.