Welltower announced on October 28 that it was divesting a medical outpatient building (MOB) portfolio to Remedy Medical Properties and Kayne Anderson Real Estate. The transaction will total $7.2 billion and will be completed in tranches through mid-2026, with the first tranche selling for $2 billion.
The portfolio comprises approximately 18 million square feet across 296 properties in 34 states. The portfolio was 94% occupied at the time of the acquisition announcement.
Remedy Medical Properties is a full-service healthcare real estate company and the largest private owner of healthcare properties in the country, with more than 33 million square feet and 25 offices spanning 44 states.
Since 2007, Kayne Anderson Real Estate has invested in alternative real estate sectors including medical office, high-end seniors housing, off-campus student housing/multifamily and self-storage.
This acquisition establishes the Remedy and Kayne Anderson Real Estate partnership as the nation’s largest owner of outpatient medical buildings, with more than 52.4 million square feet across approximately 1,104 properties in 44 states. Remedy will add 170 employees from Welltower as part of the transaction, expanding its team to more than 500 employees across 60 offices nationwide.
Citigroup Global Markets Inc., J.P. Morgan and Truist Securities, Inc., served as financial advisors to the buyers.
The acquisition was financed by two separate first mortgage loans, with one facility led by Capital One, National Association as sole bookrunner and joint lead arranger. Ally Bank, J.P. Morgan and Truist Securities also served as joint lead arrangers and BMO Bank N.A. as participant. The other facility was led by Citigroup Global Markets as bookrunner and lead arranger, with J.P. Morgan and Goldman Sachs serving as participants.
According to data captured in the LevinPro HC database, this transaction marks the 183rd MOB deal of the year. There were 213 MOB transactions announced in 2024, and 199 announced in 2023.
This transaction is the fifth joint venture transaction between Remedy Medical Properties and Kayne Anderson of 2025. The joint venture announced six transactions in 2024, and five in 2023.
This also marks the second largest purchase price in the MOB space in the LevinPro HC database. The largest was Healthcare Realty Trust’s $18 million acquisition of Healthcare Trust of America, Inc. in 2022.
