MOBs Steal Investors' Hearts

Savills’ Jeffrey Cooper leads an MOB team that's acted as financial adviser for $1.3B in MOB sales around the US in the past several months. That includes advising affiliates of HSA PrimeCare for the sale of a four-building portfolio in Champaign-Urbana and elsewhere. The buyer, Griffin-American Healthcare REIT of Newport Beach, paid $30M for the Class-A properties that are up to 100% leased.

The 47k SF, 100%-leased Provena Urbana MOB in Urbana. While this asset class doesn’t have the feast-or-famine price swings of offices, its cap rates on in-place income for Class A properties have fallen to about 6%-7% from double digits 10 years ago, Jeffrey says. One reason: 80% of MOB leases are renewed. 

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