A joint venture between Altera Fund and TPG Angelo Gordon purchased a 10-asset medical office portfolio for $108 million. NHP sold the collection with Newmark representation. Capital One Bank provided acquisition financing.
The 300,000-square-foot portfolio encompasses properties throughout Arizona, Illinois, Massachusetts, Texas and Tennessee.
Altera’s investment strategy is to acquire value-add MOB assets at a substantial discount to replacement cost. The market for such deals is on an upward trajectory as investor and lender capital availability continues to increase, according to prepared remarks by Newmark Healthcare Capital Markets Senior Managing Director John Nero.
Newmark’s Nero together with Executive Managing Directors Jay Miele and Ben Appel, as well as Senior Managing Director Michael Greeley represented NHP in the portfolio sale.
MOB investment up in 2024, clearer skies ahead
Medical office building investment rebounded in 2024, with the sales volume climbing 61 percent year-over-year, according to Cushman & Wakefield’s research. Despite last year’s challenging liquidity conditions and less active capital markets, the 2025 forecast for the MOB sector appears to be positive.
This year, single-asset and small portfolio deals are set to continue capturing investor interest, while there’s also a potential for larger portfolio deals, Colliers National Director of Healthcare Services Shawn Janus previously told Commercial Property Executive.
One such single-asset MOB deal closed earlier this year. In January, a joint venture between TPG and Cypress West purchased Cool Springs Professional Center, a 47,000-square-foot building in Franklin, Tenn.
That purchase marked the venture’s eighth acquisition and its first purchase in Tennessee. The two companies joined forces in April 2024, with plans to acquire up as much as $300 million in medical office assets throughout the Sun Belt.
