White Oak Healthcare Continues Buying Spree

2779 W. Horizon Ridge Parkway. Image courtesy of Newmark

Soon after purchasing a South Florida medical office portfolio, White Oak Healthcare MOB REIT has acquired a 38,129-square-foot property in Henderson, Nev. Stable Development sold the Class A medical office asset in suburban Las Vegas for $18.8 million.

According to CommercialEdge data, the sale was subject to a Capital One loan. Newmark represented both parties in the off-market transaction.

A White Oak representative confirmed for Commercial Property Executive that the acquisition is their first foray into Nevada, adding that the state constituted an attractive investment destination due to its quickly recovering and diversifying economy, among others.

The property, known as Coronado Medical and Surgery Center, occupies more than 2 acres at 2779 W. Horizon Ridge Parkway, close to Dignity Health – St. Rose Dominican hospital campus. Completed in 2008, the two-story facility also features a two-story parking garage. Newmark Director Mark Schuessler told CPE that the building was fully leased at the time of sale, with most of the tenants having signed long-term agreements.

The property is some 9 miles northwest of downtown Henderson and 16 miles south of downtown Las Vegas, along the St. Rose Medical corridor. Other nearby health-care providers include Seven Hills Medical Center and Pageantry Horizon Park.

Schuessler worked together with Newmark Managing Director Mike Tabeek to represent both parties in the transaction. Last February, Schuessler was also part of the team representing Providence St. Joseph Health in the $59 million disposition of a 10-property portfolio across five states.

MOBs’ appeal to investors

Despite the uncertainty brought about by the COVID-19 pandemic, medical office buildings continue to make for solid investments. A recent Nuveen report predicts that over the next decade investors will have an increased focus on health-care assets, including life science facilities and medical office buildings.

Since the beginning of 2021, White Oak Healthcare MOB REIT has made several acquisitions across the U.S., all of which are Class A medical assets located close to large health-care facilities. January portfolio additions included a four-building property in Petersburg, Va., and four medical office buildings in Ohio and Minnesota.

“High-quality medical assets with credit tenants and long-term leases are highly coveted by investors seeking yield and safety during these uncertain times. The current low interest rate environment allows for buyers to push pricing while still maintaining significant positive leverage to boost their returns,” Schuessler told CPE.