The $2 billion deal between NHP and Pacific Medical calls for the Newport Beach-based REIT to acquire medical office buildings from PMB in deals slated to close this year, next year and in 2010. By the time those sales close, NHP will have acquired $915 million worth of the San Diego-based developer's medical office buildings and will own exclusive rights to acquire up to an additional $1 billion of buildings from Pacific Medical over seven years at a discount through a development agreement. Nationwide bought the first seven assets of the $2 billion total from PMB for $120 million last fall. This year's closings will bring the total to 22 properties and $580 million; the REIT has agreed to acquire four more 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 largest medical office building transaction ever," according to Philip Camp, managing director with Shattuck Hammond. "In MOB sales, your average deal is a one-off transaction in the $10 million to $20 million range," Camp observes, and even the larger transactions are typically in the range of $100 million to $200 million.

The existing properties total about two million sf, with about 90% of the assets on hospital campuses and with an overall occupancy of about 94%. The properties yet to be built total two million sf.

A recent public filing by NHP says that the company "will obtain the right, but not the obligation, to acquire up to $1 billion of MOBs to be developed by PMB over the following seven years." As part of NHP's agreement with PMB, which was announced in February, the REIT also acquired a 50% stake in PMB's property management division, PMB Real Estate Services.