Dealmaker: Newmark Secures $50M for Medical Office Building Portfolio

(Pennsylvania medical office building. Photo courtesy of Montecito Medical Real Estate)

Newmark, New York, secured $50.4 million for a national medical office building portfolio.

Newmark Senior Managing Director John Nero, Executive Managing Director Ben Appel and Senior Managing Directors Jay Miele and Michael Greeley advised portfolio owner and borrower Montecito Medical Real Estate, Nashville, Tenn. Associate Ron Ott provided transactional support.

The portfolio included seven medical office buildings totaling 200,000 square feet in Pennsylvania (four assets), Illinois (two assets) and Florida (one asset). All properties are fully leased to healthcare providers comprised mostly of investment-grade non-profit health systems and physician networks. Portfolio tenants include specialty services such as ambulatory surgery, imaging, orthopedics, gastroenterology, OB/GYN, laboratory and diagnostics, among others.

Nero noted the financing opportunity generated significant interest from lenders given the portfolio’s stable occupancy, strong credit tenancy and attractive borrower profile. “Lender interest in medical office buildings remains strong given the sector’s fundamentals,” he said.