Alliance Consolidated Group of Companies has acquired a 16,761-square-foot medical outpatient building (MOB) in Delray Beach, Florida for $9.67 million. The transaction, which closed at approximately $577 per square foot, represents Alliance’s strategic expansion into the Florida healthcare real estate market. The deal was announced on April 8, 2025.
Alliance Consolidated Group of Companies, founded in 1995, is a private real estate investment firm specializing in net-leased medical buildings with in-house management capabilities.
The MOB is located at 6646 West Atlantic Avenue in Delray Beach, Florida. The 16,761-square-foot facility traded for $576.93 per square foot. The property was renovated in 2020 and includes a multi-specialty surgery center. The property is 100% leased to two long-term tenants: Medical Specialists of the Palm Beaches and Minimally Invasive SurgiCenter.
Medical Specialists of the Palm Beaches is a large, primary care-focused, multi-specialty physician group serving South Florida. Founded in 1995, MSPB has grown to include more than 125 providers across more than 37 offices throughout Palm Beach and Broward counties. The company offers comprehensive services including primary care, cardiology, neurology, hematology, oncology, gastroenterology, colorectal surgery, concierge healthcare, laboratory services, dermatology and endocrinology.
Minimally Invasive SurgiCenter of Delray Beach is an ambulatory surgical center located at the property. The center focuses on providing surgical procedures that don’t require hospitalization, with expected service duration not exceeding 24 hours post-admission. The facility specializes primarily in gastroenterology and features two operating rooms and three treatment rooms within its more than 11,000 square foot facility spread over two floors. The center is accredited by the Accreditation Association for Ambulatory Health Care (AAAHC), fully licensed by Florida and Medicare-certified and accepts most major insurance plans.
Acquirer Strategy and Background:
Ben Reinberg is the founder and CEO of Alliance Consolidated Group of Companies, directing the company’s strategic and investment decisions. Under his leadership, the company has built a portfolio valued at more than $500 million. This acquisition is part of Alliance’s strategy to target high-growth markets and expand its presence in the healthcare real estate sector.
Regarding this specific acquisition, Reinberg stated:
“Delray Beach represents exactly the kind of market we target — affluent, growing, and underserved in terms of accessible healthcare infrastructure. This acquisition checks every box: Essential services, long-term tenants, strong lease structures, and a high-barrier-to-entry submarket. This is the kind of deal that delivers reliable growth and recession-resistant performance for our investors.” He continued, “This deal is a textbook execution of our investment thesis. We pursue medical [outpatient] buildings in top 100 MSAs where demographic trends and healthcare needs intersect — and we bring exclusive access and operational excellence to each one.”
Alliance’s investment strategy focuses on MOBs, which the companhy believes offer stability, recession resilience and serve as a hedge against inflation. These properties have demonstrated the ability to withstand economic fluctuations and maintain high occupancy and rental income, even during challenging periods like the COVID-19 pandemic. MOBs benefit from the stability of their doctor tenants, who often have high creditworthiness and are less likely to default compared to tenants in other real estate sectors. Healthcare providers also tend to have longer tenancies due to the specialized nature of their spaces.
This is not Alliance’s first foray in Florida. In October 2022, the company acquired a portfolio of four net-leased MOBs in central Florida for $8.6 million. These properties, totaling 25,483 square feet, are operated by Florida Dermatology and Skin Cancer Centers and are located in Winter Haven, Lake Wales, Inverness and Pinellas Park, Florida. That acquisition was part of a sale-leaseback transaction and was the second made by Alliance Medical Fund I, a $50 million equity investment vehicle focused on net-leased medical and veterinary properties in high-growth U.S. markets.
Market Context and Valuation:
The MOB sector in Florida is considered stable and resilient, due to the essential nature of healthcare services, which remain in demand regardless of economic conditions. Florida’s significant aging population (around 42% aged 50 or older) is a major driver of demand for healthcare services and, consequently, medical outpatient space. This demographic historically consumes the most healthcare services. Florida’s overall population growth, driven by its attractive lifestyle and business environment, further fuels demand for medical facilities. The healthcare sector is a major employer and contributor to Florida’s GDP, indicating its significant role in the state’s economy and the continued need for facilities.
Increased investor demand and limited availability of assets have caused cap rates to compress (decrease). As of early 2025, cap rates for prime MOB properties have compressed to a range of 5.5% to 6.5%, reflecting the market’s recognition of their investment-grade quality. Regional variations exist in Florida, with North Florida showing an average cap rate of 6.9% and South Florida (where Delray Beach is located) showing an average cap rate of 6.3%.
Rents for MOBs have been steadily increasing, with top-tier MOBs seeing the steepest rent growth. In Q4 2020, average MOB rents increased by 5.5%, and more recently, rental rate growth has averaged 3.8% annually since 2021. MOBs generally have lower vacancy rates compared to traditional office spaces. In mid-2020, office vacancies were 12.6% versus 8.6% for MOBs. MOB occupancy was 92.8% in Q4 2024 nationally. In South Florida specifically, the vacancy rate was 6.5% as of early 2024.
Future Outlook:
Looking forward, easing interest rates could positively impact transaction activity and investment in 2025. However, high insurance premiums, particularly in coastal areas like Delray Beach, could present challenges. While MOBs are recession-resistant, broader economic conditions can still influence the market. Overall, the Florida MOB market is expected to remain strong in 2025, characterized by high demand, rising rents and compressed cap rates. The state’s demographic trends and the ongoing evolution of healthcare delivery models will continue to shape this sector.
