Harrison Street Sells $215M MOB Portfolio
Anchored by leading health systems, most properties are situated in the Bay Area.
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Harrison Street has sold a portfolio of eight California medical office buildings valued at nearly $215 million, the company announced Monday.
The portfolio totals 380,000 rentable square feet and is primarily located in the San Francisco Bay Area, with properties both in the city and in Santa Rosa, Daly City, Alameda, and Greenbrae. Two properties are in the Los Angeles neighborhood of Van Nuys.
Tenants include leading regional health systems such as Marin Health, Sutter Health, CommonSpirit Health and Kaiser Permanente.
The properties were held across several of Harrison Street’s funds, and a majority are managed in a joint venture with Pinnacle Capital Management Services.
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A Harrison Street spokesperson did not reply to Commercial Property Executive’s request for additional information.
CBRE’s U.S. Healthcare & Life Sciences Capital Markets team represented Pinnacle in the transaction.
Healthy sector
Harrison Street has been very active in the medical office sector. In 2021, the company closed 66 MOB investments for a total of about $1.4 billion. Most recently, Harrison Street acquired 11 fully occupied medical office properties across Florida, Wisconsin, Illinois, Minnesota, North Carolina and North Dakota from The Ryan Cos.
Harrison Street isn’t the only MOB investor that’s active in multiple states. In early 2021, White Oak Healthcare acquired a three-building, 77,000-square-foot MOB portfolio in South Florida from Woodside Health, then quickly followed that up with the purchase of a single Class A property in metro Las Vegas.
The medical office sector has remained resilient, with economic recovery and reopening boosting it in the shorter term and demographic trends favoring it longer-term, according to a mid-year 2021 report from Marcus & Millichap. Rising employment in particular is expected to help the sector by boosting the number of people with health insurance.
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