Anchor Health Properties Buys 3 MOB Assets

The company acquired a total of 159,000 square feet of medical office space in Happy Valley, Ore., Newnan, Ga., and Bridgewater, N.J.
20 Francis Way
20 Francis Way. Image courtesy of Anchor Health Properties

In separate deals, Anchor Health Properties has purchased three fully leased medical office buildings in Happy Valley, Ore., marking its entry in the metro Portland market, as well as Newnan, Ga. and Bridgewater, N.J. Anchor acquired the assets for an undisclosed price from undisclosed sellers.

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The portfolio totals 158,858 square feet of Class A medical office space. Anchor found joint venture partners for each of the acquisitions, with Capital One providing debt financing services for each transaction. Anchor will also run the property management programs for all three medical office assets.

Mt. Scott Professional Center
Mt. Scott Professional Center. Image courtesy of Anchor Health Properties

Anchor made its first metro Portland investment by acquiring the Mt. Scott Professional Center. The 38,858-square-foot medical office building is located in Happy Valley, Ore., at 9200 SE. 91st Ave., nearby the Adventist Medical Center and Providence Portland Medical Center. The property is 100 percent occupied and includes anchor tenant East Portland Surgical Center, alongside The Oregon Clinic and Clearview MRI. The medical office space offers capabilities for cosmetic surgery, ENT, GI, gynecology, neurosurgery, ophthalmology, orthopedic, general pain and urology.  

In Georgia, Anchor acquired 20 Francis Way, a 27,000-square-foot medical office building that is fully leased to Piedmont Healthcare. According to Anchor, the property was built specifically for Piedmont-affiliated physicians in 2008 and offers many services including cardiology, physical therapy, physical rehabilitation, and has a state certificate for imaging services.

The Bridgewater Medical Office Building & Ambulatory Surgery Center
The Bridgewater Medical Office Building & Ambulatory Surgery Center. Image courtesy of Anchor Health Properties

Anchor’s largest asset acquired in the transaction was in Bridgewater, N.J. The company formed a joint venture with The Carlyle Group to purchase The Bridgewater Medical Office Building & Ambulatory Surgery Center. The 93,000-square-foot medical office building is also fully leased, anchored by Atlantic Health System and Hunterdon Healthcare. The property offers services including an imaging center, four operating rooms, physical and occupational therapy, gastroenterology and nutrition, and heart and vascular care.

In the market for MOBs

James Schmid, Anchor’s CIO & managing partner, said in prepared remarks that the Oregon acquisition is the type of deal that Anchor looks for, an off-market property that’s fully leased, with high-quality, long-term regional tenancy in a market that has high barriers to entry.

The company focuses exclusively on health-care facilities and has been very active in the sector this year. In November, Anchor acquired three fully leased medical office buildings totaling around 100,000 square feet in Charlotte, N.C. for roughly $50 million. Two months prior, the company also acquired a 24,000-square-foot medical office building in Watkinsville, Ga. In total, Anchor closed on approximately 769,000 square feet of health-care facilities with a combined value of more than $400 million in 2020, Schmid told Commercial Property Executive.