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.Give us a call or email Richard Smith for detailed information on these or any other medical office buildings in the Southeast Region. We can also complete full market research studies including available spaces, lease rates, sales comparables and tenant rosters.
