AW Property Lands $55M for MOB Portfolio

November 15, 2024

Medical Office Finance News Raleigh-DurhamMoreSoutheast

The nine properties total nearly 300,000 square feet.

Exterior shot of Church Street Medical Park in Greensboro, N.C. — The three-building Church Street Medical Park came online in three phases between 2003 and 2007. *Image courtesy of JLL*

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.

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.