Last Week in Medical CRE

Last week showed just how steady this sector has become, even when the headlines are quiet.

In the UK the merger of Primary Health Properties and Assura moved forward. The deal crossed another acceptance milestone and new PHP shares began trading on Friday. That may feel like an overseas story, but it matters here. Consolidation of primary care real estate on that scale reinforces stability, and stability on one side of the Atlantic shapes how lenders and investors think everywhere else.

Back in the States, capital flowed into outpatient assets. Remedy Medical Properties and Kayne Anderson closed on three medical buildings in South Denver. These were not trophy towers, but multi-tenant clinics anchored by strong specialties like ortho and ENT. Deals like this prove again that investors are willing to pay up for locations with sticky providers and high patient throughput.

Leasing momentum was also real. Stockdale Capital Partners announced fresh commitments at 1401 Philomena in Austin, right next to Dell Children’s. That project shows the power of adjacency. You can dress up an office building anywhere, but being tied to a growing pediatric hub is what keeps rent rolls strong.

On the transactions side, several trades hit the wire. Vista Medical Center in Lakeland sold at very high occupancy. Fairfield Advisors closed a two-building portfolio in Little Rock and Pittsburgh. CrownPoint Partners executed a dental sale-leaseback across Ohio. Different geographies, same theme: investors will write checks when tenancy is durable and cash flow predictable.

The story to watch going forward is MedCraft’s reported plan to sell a 24-building, nearly one-million-square-foot portfolio, valued around $300 million. That kind of number confirms that scale outpatient portfolios still draw serious attention. And on the capital side, Flagship REIT expanded its credit facility to $500 million, another sign that banks are still open for business when assets are well-leased and granular.

The takeaway is simple. Investors want occupancy north of ninety percent, tenancy that can weather reimbursement pressure, and locations close to hospitals or strong referral corridors. When those boxes are checked, deals are closing and capital is available.

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