Overall M&A Volume and Top Players
The halfway point for 2025 is nearly here, so the team at LevinPro HC wanted to take this opportunity to review the top deals of the year in the Medical Outpatient Building sector. M&A activity in the sector has been slow compared with 2024, with only 74 deal announcements so far. Annualized, that’s approximately 160 deals (give or take), much lower than the 212 deals announced in 2024.
Most of the deals (58 of them) this year have targeted a single property, averaging approximately 41,800 square feet. However, there have been a handful of portfolio deals, with those deals averaging 88,200 square feet.
Total announced deal value has hit $486.3 million so far across 27 deals, with the rest keeping terms undisclosed.
Montecito Medical Real Estate continues to be one of the most active buyers in the healthcare real estate market, with 14 deals so far. Other buyers, like Elliott Bay Capital Trust (six deals) and Remedy Medical Properties (three deals), are also pursuing acquisition opportunities.
On the broker side, several have been extremely busy this year. CBRE Group, Inc. has helped facilitate nine deals (12 properties and 72,000 square feet in total), and Marcus & Millichap has closed four transactions (four properties and 25,000 square feet total).
Top Medical Outpatient Building Transactions
- An undisclosed buyer bought a 9-building medical outpatient portfolio anchored by larger regional hospital systems, including Methodist UnityPoint, University of Iowa Health, Mercy-Trinity Health and St. Mary’s-Tenet Health. The properties are located in Des Moines, Iowa, Tucson, Arizona, Pittsburgh Pennsylvania and Akron, Ohio, and were valued at $109.5 million. The seller, The Graham Group, selected Fairfield Advisors to be the exclusive advisor on the transaction.
- Altera Fund Advisors, a Dallas, Texas-based commercial real estate firm, acquired 10 medical outpatient buildings located in Arizona, Illinois, Massachusetts, Tennessee and Texas for $108 million. The Newmark Healthcare Capital Markets team, including John Nero, Jay Miele, Ben Appel and Michael Greeley, were hired by National Healthcare Properties to help sell the properties.
- In Fair Lawn, New Jersey, Atkins Companies acquired a 150,000-square-foot property for $22 million. The three-story, Class-A building is anchored by a newly built-out Summit Health multispecialty hub currently totaling 78,000 square feet. The price for the building is $146.67 per square foot. CBRE Group, Inc.’s Jeffery Dunne, Doug Rodio, Travis Langer and Dan Blumenkrantz, in collaboration with Brannan Knott and Chris Bodnar of CBRE’s U.S. Healthcare Capital Markets team, brokered the sale.
- UCLA Health acquired three medical outpatient buildings in West Hills, California for an undisclosed sum. Totaling 162,554 square feet, the buildings are located adjacent to UCLA West Valley Medical Center, which UCLA Health acquired in March 2024. Significant capital improvements and professional maintenance by Healthcare Realty, the seller, led to an overall occupancy rate of 94.1% and a tenant roster that includes UCLA Health, Optum, Providence Health & Services, City of Hope, Select Medical and LabCorp. CBRE also helped out this one as an advisor: Chris Bodnar, Brannan Knott, Zack Holderman, Cole Reethof, Trent Jemmett and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Angie Weber and Dana Nialis of CBRE’s Southern California Healthcare Advisory and Transaction team to act as the exclusive advisors to Healthcare Realty.
