In This Real Estate Market, Medical Complexes Hot
On the sales sides, buyers have snatched up several properties across South Florida in the last 18 months.
Scottsdale, Ariz.-based Healthcare Trust of America Inc. acquired the four-story Medical Arts Pavilion in Wellington for about $13 million as part of an $84.2 million, five-property portfolio deal. And last September, Investcorp International Inc. generated a $12.5 million profit from the sale of Bethesda Health City in Boynton Beach less than two years after acquiring the property.
At CBRE, where a health care capital markets group responds to increased demand, such sales have fueled business.
In Palm Beach County alone, the company has traded three medical centers in the last seven months.
This month, it arranged the sale of Columbia Medical Plaza, a 43,797-square-foot office park at 4700 N. Congress Ave., to Dallas-based Velocis West Palm LP for about $5.7 million. Also in early January, it brokered the $30.7 million sale of Jupiter Medical and Technology Park. And last July, it traded an 11,000-square-foot medical office building at 1450 S. Dixie Highway in Boca Raton for about $1.6 million.
Brokers say they're seeing renewed interest on both the leasing and investment sides.
When the Columbia Medical Plaza last changed hands in 2010, more than half of the offices in the 27-year-old building were vacant. This time around, it came to market 83 percent occupied.
"Positive demographic trends, such as the continued in-migration of seniors to the region, make this type of asset extremely attractive to investors," O'Donnell said. "We've received tremendous demand from a number of groups, several of which have changed their business model to acquire medical centers."