HREA | Healthcare Real Estate Advisors announced that it acted as an advisor to the sale of an Overland Park, Kansas medical outpatient building (MOB) portfolio.
The MOB consists of three single-tenant buildings that are 100% leased and occupied by College Park Family Care, a multi-specialty group that is a part of HCA Healthcare. It comprises 66,651 square feet.
The Levin HC team spoke with Christopher Stai, Managing Director of HREA, who was able to provide insight into the transaction. HREA, based in Raleigh, North Carolina, with offices in San Diego, Nashville and Denver, is a leading advisor in the healthcare real estate sector, specializing in providing healthcare providers, investors and developers with acquisition, disposition and capitalization strategies throughout the United States.
The buyers were Kobalt Investment Co. and Blue Drake Capital.
Kobalt Investment Co. provides commercial real estate investment opportunities for institutional partners as well as high-net-worth clients, family offices and individuals. Founded in 2022, Kobalt Investment focuses on acquiring, leasing and managing retail centers and single tenant portfolios. The company offers services in asset management, property management and investor relations.
Blue Drake Capital is a privately held real estate investment and development company headquartered in Dallas, Texas. Blue Drake acquires and develops all asset types with a focus on retail, office and healthcare. Blue Drake’s principals have directly managed more than $700 million in transaction volume across multiple real estate categories.
The seller was College Park Associates LLC, a group of physicians. Stai noted that the physicians “originally developed the MOB to serve their large multi-specialty practice, which has since been acquired by HCA.”
The financial terms were not disclosed. However, Stai said, “The overall valuation reflected a shorter Weighted Average Lease Term (under four years), and the anticipated capital improvements required for the facilities. That said, the strength of the physician group, HCA’s affiliation and the market fundamentals supported a strong valuation.”
HREA began working on this transaction a little over a year ago and was referred by a past client. Overall, the transaction was completed with little challenges or regulatory issues.
“However, the transaction did require certain lease modifications to meet the requirements of the buyer’s equity partner and lender, which was a key part of the closing process,” said Stai.
Regarding the seller, Stai also spoke about the strategic benefits of selling the MOB to a real estate investment firm, including removing Stark Law compliance risks. Stark Law is the common name for a set of laws that bars physicians from referring patients for ‘designated health services’ covered by Medicare or Medicaid to entities where the physician or an immediate family member has a financial interest.
“The sale aligned the real estate with a group committed to implementing a capital improvement plan that will enhance the facilities for HCA, its providers, staff, and ultimately, the patients,” said Stai. “It was a great example of a transaction that created value for all parties involved — the type of outcome we always aim to deliver.”
According to data captured in the LevinPro HC database, 64 MOB transactions have been announced since the start of 2025. In 2024, 212 MOB deals were reported and in 2023, there were 198, indicating a steady recovery in transaction activity.
This successful engagement marks HREA’s fourth MOB advisory assignment of 2025. In 2024, HREA completed seven transactions, including two ambulatory surgery centers, two medical office buildings, one urgent care center, and one micro-hospital leased to Dignity Health.
Currently, HREA is engaged on 12 separate client assignments totaling approximately $251 million in potential transaction value. This robust pipeline is a positive indicator for 2025, especially as the investment market continues to stabilize following the elevated interest rate environment of the previous two years.
When speaking about the state of the MOB M&A market, Stai expressed a cautiously optimistic outlook.
“Given the recent uncertainty surrounding tariffs and broader market volatility, we would have expected some hesitation in the market,” said Stai. “However, that hasn’t been the case. We’re seeing a stronger appetite from groups that had been on the sidelines over the past couple of years and are now feeling more ebullient about making make acquisitions. With the continued convergence in the bid-ask gap between buyers and sellers, investor sentiment toward medical real estate remains very positive, which should help drive increased transaction volume as the year progresses.”
Stai went onto say that the fundamentals of the healthcare real estate market “remain resilient”, especially in uncertain times. He drew attention to the idea that for investors, the sector continues to “serve as a defensive and stable asset class relative to broader commercial real estate.” While the interest rate environment has improved from this time last year, spreads and the potential rising cost of labor/construction continue to present challenges for the market, especially concerning new development. With this, Stai anticipates that provider groups may be prompted to invest in their existing real estate assets rather than seeking new development.
“We continue to see strong buyer interest in clinical real estate, driven by limited new supply and the ongoing demand for healthcare services,” said Stai, concerning the capital markets. “This transaction reflects those dynamics: aging infrastructure being upgraded, physicians monetizing their real estate, and investors positioning themselves in a high-demand, low-supply sector.”
Overall, this transaction underscores the ongoing strength and strategic evolution of the medical office building (MOB) sector. Despite persistent headwinds from elevated construction costs and broader market uncertainty, the sector’s fundamentals remain strong. Key drivers include an aging population, the continued migration of procedures to outpatient settings, particularly ambulatory surgery centers (ASCs), and sustained demand for healthcare services. These trends, coupled with investor appetite for stable, income-generating assets, continue to reinforce the sector’s long-term resilience and appeal.
For more stories with HREA’s perspective on dealmaking, explore the stories below:
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