September 13, 2016
Mike Hargrave

St. Joseph’s Mission MOBs Trade (Again)

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.

missionmedical

Mission Medical Center

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.