Kayne Anderson JV Buys Portland-Area MOB Campus

The sale of the value-add property in Gresham, Ore., marks one of the few medical office deals to close in the market this year.
Gresham Station Medical Plaza

Gresham Station Medical Plaza, a four-building, 100,419-square-foot medical office campus in Gresham, Ore., has changed hands. Public records show a joint venture between Kayne Anderson Real Estate Advisors and Remedy Medical Properties paid $30.9 million for the Class B asset, or $308 per square foot.

According to CommercialEdge data, the previous owner was Stockdale Capital Partners, which had acquired the value-add property in 2017 for $23.5 million. CBRE U.S. Healthcare & Life Sciences assisted the seller in the current deal.

Situated on nearly 5 acres at 1867 NW Civic Drive, Gresham Station Medical Plaza consists of one-, two- and three-story buildings completed in 2004. According to CBRE, the property was 79 percent leased at the time of the sale to a mix of health-care providers offering a wide range of specialties, including cardiology, nephrology, physical therapy, imaging and dentistry.

A tenant at the property since its opening, Adventist Health Portland anchors the facility, recently signing a 10-year, 35,361-square-foot lease through March 2030. Other occupants include Providence Health & Services and DaVita.

The medical campus is 14 miles east of downtown Portland in a Qualified Opportunity Zone. Legacy Mount Hood Medical Center is less than 3 miles northeast.

CBRE’s Chris Bodnar, Lee Asher, Ryan Lindsley, Jordan Selbiger, Sabrina Solomiany and Zack Holderman worked together with Brian Norton representing Stockdale. Apart from Norton, the same team was also instrumental in the sale of a 69,169-square-foot medical asset in Everett, Wash., last summer.

Slow to no deal velocity

Portland’s medical office market was quiet in the first quarter, with no major deals closing, CommercialEdge data shows. In the fourth quarter of 2020, only two major transactions occurred in the sector, according to a Cushman & Wakefield report.

In one of those deals, Anchor Health Properties entered the Portland market with the $15.4 million purchase of Mt. Scott Professional Center, a 38,858-square-foot medical office building in Happy Valley, Ore. That transaction closed as part of a wider acquisition round involving a 27,000-square-foot Newnan, Ga., asset and a 93,000-square-foot medical building in New Jersey.