The $2billion deal between NHP and Pacific Medical calls for theNewport Beach-based REIT to acquire medical office buildings fromPMB in deals slated to close this year, next year and in 2010. Bythe time those sales close, NHP will have acquired $915 millionworth of the San Diego-based developer's medical office buildingsand will own exclusive rights to acquire up to an additional $1billion of buildings from Pacific Medical over seven years at adiscount through a development agreement. Nationwide bought thefirst seven assets of the $2 billion total from PMB for $120million last fall. This year's closings will bring the total to 22properties and $580 million; the REIT has agreed to acquire fourmore properties from PMB for $205 million in 2009 and two more for$130 million in 2010.

The agreement between NHP and PMB is "probably the largestmedical office building transaction ever," according to PhilipCamp, managing director with Shattuck Hammond. "In MOB sales, youraverage deal is a one-off transaction in the $10 million to $20million range," Camp observes, and even the larger transactions aretypically in the range of $100 million to $200 million.

The existing properties total about two million sf, with about90% of the assets on hospital campuses and with an overalloccupancy of about 94%. The properties yet to be built total twomillion sf.