AW Property Lands $55M for MOB Portfolio
AW Property Co. has obtained $55.2 million in acquisition financing for a North Carolina medical office portfolio totaling 297,500 square feet. The nine properties are in Burlington, Durham and Greensboro.
JLL worked on behalf of the borrower and placed the 10-year, fixed-rate loan. The Guardian Life Insurance Co. provided the note, according to public records show.
The firm acquired the portfolio with an average vintage of 2006 from Healthcare Realty in July. The seven Guilford County assets changed hands for a combined $79.4 million, public records also show.
The medical facilities were 99 percent leased at the time of sale to healthcare systems and independent physician practices, with credit tenants representing 73 percent of in-place income. Some of the companies occupying space within the portfolio include Cone Health, Duke Health and UNC Health.
READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025
Located on or adjacent to hospital campuses, the traded properties include:
- Cone Health Neurology Clinic, a one-story building in Greensboro
- Church Street Medical Park, a three-building campus in Greensboro
- A two-story facility at 2001 N. Church St. in Greensboro
- Wesley Long MOB, a three-story building also in Greensboro
- Alamance Eye Center, a 2007-completed property in Burlington
- UNC Family Medicine Center, a medical facility in Durham
- Duke Medical Center in Durham
JLL Senior Managing Director Travis Anderson and Senior Director Anthony Sardo led the Capital Markets Debt Advisory team representing the borrower.
MOB investment activity set to grow
The medical office real estate sector remains strong, with outpatient demand projected to rise by 26 percent over the next decade, according to a Savills report. Additionally, economic conditions, such as interest rate cuts, are likely to stimulate further investing in medical office buildings.
Earlier this week, Onicx Group acquired Trinity Oaks Medical Arts Building, a two-story, 31,000-square-foot asset in Trinity, Fla. Part of a three-building BayCare Health System campus, the property came online in 2008.
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