REAL ESTATE NEWS

Medical Office Building

After being built exclusively for a local health system, the County of Santa Clara has taken a new medical office building off of Harrison Street Asset Management's hands for $340 million.

The 230,506-square-foot infrastructure is a part of a mixed-use development that sits on seven acres. The MOB building was designed to host Santa Clara Valley Healthcare and serve as its new Valley Health Center site.

"The transaction with the County of Santa Clara underscores our ability to collaborate effectively with health systems, delivering mutually beneficial solutions," Ben Mohns, global head of asset management of real estate at Harrison, said in a statement.

"We're proud to have delivered a modern, purpose-built healthcare facility for the community and to complete a transaction that underscores our ability to originate, develop, and exit complex, notable real estate in sectors within which we have a high level of conviction."

The goal of the full development, which features a total of 590 residential units and transit in the area, was to balance a live and work environment, according to Harrison.

Despite the sale, Harrison has been involved with plenty of offensive plays, as of late. For example, the company formed a joint venture with Oakmont Senior Living and Blue Mountain Enterprises in November to develop and acquire a six-property senior housing portfolio in California, at a purchase price that exceeds $200 million. Also during that fall, it, along with another JV partner, Morningstar, acquired a 21-property, 1.3 million square foot portfolio in the Sun Belt.

Meanwhile, in the North American healthcare space, Harrison has invested roughly $9.8 billion across 391 properties since the Chicago-based firm's establishment.

A recent JLL report revealed that a shift to outpatient care is leading to strong demand for MOBs, especially in the Sun Belt and high-growth metros. Scarce supply in these markets is driving occupancy higher.

Source: GlobeSt/ALM