MOB Sale Volume Increases in 3Q 2009

Metro Atlanta - Sale of medical office building portfolio doubles total yearly volume in 3Q 2009.   The recent sale of Johns Creek I, II and III totaling 72,331 square feet in 8 buildings for $7.7 million pushed total dollar volume for 3Q 2009 to $11.6 million.  This represents an increase over the 1Q and 2Q 2009 combined total volume of $5.0 million.  The average price per square foot for these MOB sales declined from $172.29 per square foot in 1Q 2009 and $108.57 per square foot in 2Q 2009 to $91.74 per square foot in 3Q 2009.   At the time of sale the Johns Creek portfolio was only 45% occupied which lowered the overall price by approximately $2.0 million below asking price.  Both building replacement cost and CAP rates at 95% occupancy support the asking price.  With current market activity, expect dollar volume to remain strong and sales prices to be in the range of $150.00 to $175.00 per square foot for both smaller investment grade and owner/user MOBs through 4Q 2009.

BEST of MOBATL - Baltimore Row

Baltimore Row

1 Baltimore Pl NW
Atlanta, GA 30308

Downtown Submarket

Sweeping views of downtown Atlanta. Located on a private cobblestone cul de sac with 24-hour security. Beautiful atrium with glass elevator complete with large, well lighted parking structure. Close to Downtown and Midtown business districts. Immediate access to I-75/I-85 and the Civic Center MARTA station. Listed on the National Historic Registry. 19th century Baltimore style row house architecture. New roof and windows. Penthouse office suites are newly renovated.

MOB Central Perimeter Market Report – Mid Year 2009

The Central Perimeter medical office building market is located at GA 400 and I-285 around the areas three primary hospitals: Northside Hospital, St Joseph’s Hospital of Atlanta and Children’s Health Care of Atlanta at Scottish Rite.  The area commonly referred to as Pill Hill has 21 MOBs totaling 2.2 million square feet located both on campus and off campus of the major hospitals.  There is approximately 61 spaces available ranging from less then 1,000 SF to over 20,000 SF for a total of 337,835 vacant square feet.