Medical Office

Investors ranging from private equity groups to 1031 exchange buyers to vets looking for a place to put their retirement money are noticing the stability of vet clinics as an investment play.

One Medical, whose parent is called 1Life Healthcare Inc., operates 182 medical offices in 25 markets in the United States. Customers pay a subscription fee for access to its physicians and round-the-clock digital health services.

Activist investor Jonthan Litt owns a stake in Healthcare Realty, which is proposing to buy Healthcare Trust of America Inc.

There is more than 50 million sq. ft. of medical office development currently in the construction pipeline throughout the United States.

Developers are quickly converting some existing office spaces, but not every building is a good fit to include laboratory space.

The REIT’s “wellness infrastructure” portfolio includes seniors housing, skilled nursing facilities, hospitals and medical office buildings.

The transaction values the portfolio at $1.78 billion and is expected to generate $1.3 billion in proceeds for Medical Properties Trust.