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H2C INDUSTRY INSIGHTS • REAL ESTATE
 

Philip J. Camp                      

Principal                                    

212.257.4505                        

pcamp@h2c.com                          

 

Brady R. Stern

Vice President

312.508.4203

bstern@h2c.com

 

Matthew T. Tarpley

Vice President 

212.257.4516

mtarpley@h2c.com

 

E. Chris Byrns

Associate

212.257.4518

cbyrns@h2c.com

 

Mitchell J. Levine

Associate

212.257.4519

mlevine@h2c.com

 

Stuart L. Gilbert

Analyst

212.257.4506

sgilbert@h2c.com

ATLANTA

3333 Piedmont Road
Suite 725
Atlanta, GA 30305
404.937.1350

 

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 and related companies 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 $12.5 billion nationwide.  For more information on our real estate advisory group, please contact one of the adjacent H2C professionals.

 

MEDIA CONTACT

Kelly T. Duong
Hammond Hanlon Camp LLC
858.242.4810
kduong@h2c.com

NEW YORK

623 Fifth Avenue
29th Floor
New York, NY 10022
212.257.4500

 

CHICAGO

311 South Wacker Drive
Suite 5425
Chicago, IL 60606
312.508.4200

 

SAN DIEGO

4655 Executive Drive

Suite 280
San Diego, CA 92121
858.242.4800

Smaller MOBs Fuel Supply to Keep Up with Demand
posted on Nov. 21, 2019

 

Cap rates remain at all-time lows despite limited dollar-transaction volume in the third quarter. Significant variation in yields between regions is apparent.

 

 

The third quarter is historically a slow period of transaction activity, and Q3 2019 is no exception in terms of medical office building (“MOB”) dollar volume. In Q3, $2.7 billion in MOB transaction volume across 363 properties was recorded, compared with $3.1 billion across 300 properties in Q2.

 

During the first three quarters of 2019, 978 properties changed hands, marking the second-highest property volume over the past five years in that span. However, a look at the dollar volume recorded tells a different story: The $8.4 billion in MOB dollar volume recorded year to date is among the lowest in the past five years for this period.

 

With cap rates remaining at historical lows, these dynamics suggest that the average MOB transaction value through the first three quarters of 2019 is approximately $8.5 million, a 15 percent reduction from the three-year historic average of $10 million. The lower average pricing suggests that smaller MOBs are meeting the demand for investors when packaged with other MOBs into a portfolio.