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MOBs Are Moving

MOBs Are Moving
Madison Medical Center
The doctor is in . . . but his landlord is out of state. EnTrust, a division of the Alter Group, repped the seller in three recent medical office building transactions, EnTrust's James Clark  tells us.Madison Medical Plaza, above, at the 480-bed St. Joe Provena Campus in Joliet was sold by Alter+Care to Florida-based Rendina Cos., while Equity Inc., a Midwestern company, purchased the 327k SF Wellspring Medical Office Center on the  Christus Spohn Hospital Campus in Corpus Christie, Texas, below. James says these represent a trend away from local ownership of medical office properties, especially those that already have an anchor tenant.
Wellspring Medical Office Center
In the third transaction, the 35k SF St. Bernadine's Medical Plaza in Rialto, Calif. was sold to local private ownership. James says the recent stability of MOBs has led some investors who weren't previously interested in the asset class to move away from traditional office investments. MOB owners are also looking at their balance sheets and finding that sometimes its more beneficial to do a sale-leaseback than to own a building themselves, bringing more buildings to the marketplace.