H2C 4th Quarter Medical Office Building Report

Hammond Hanlon Camp LLC Fourth Quarter Medical Office Building Report: Large Portfolio Activity Drives 2016 Transaction Volume

posted on March 14, 2017

NEW YORK — Investor appetite remained strong for medical office buildings in 2016 with a total of $8.5 billion in reported transaction volume. It was a year marked by large portfolio sales, fueled by institutional capital. NorthStar Realty Finance Corp. (NYSE: NRF) sold a portfolio of 38 properties with a total value of $838 million to Starwood Property Trust (NYSE: STWD). Catholic Health Initiatives (“CHI”) monetized a portfolio of 52 properties through a sale to Physicians Realty Trust (NYSE: DOC) for $703.5 million. Blackstone (NYSE: BX) sold a 4.5 million square foot medical office and life sciences portfolio to Ventas (NYSE: VTR) for $1.5 billion. In the aggregate STWD, DOC and VTR acquired roughly $3 billion in medical office and related healthcare real estate, approximately 36 percent of the total $8.5 billion in sales transacted for the year.

Inside the 4Q16 MOB Quarterly Update

Key Transaction Highlights
Transaction Volume Trends
Regional Transaction Highlights
Pricing and Cap Rate Trends
Industry Rate Benchmark Trends

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ABOUT HAMMOND HANLON CAMP LLC

Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, go to h2c.com

REAL ESTATE INVESTMENT BANKING PRACTICE

The real estate investment banking professionals at H2C have successfully served as advisor for over 20 years on real estate transactions in excess of $10 billion nationwide. For more information on our real estate advisory group, please contact one of the adjacent H2C professionals.

MEDIA CONTACT

Dara Litwin
Hammond Hanlon Camp LLC
212.257.4527
dlitwin@h2c.com