MOB Cap Rates Continue to Compress

A medical office building in Pasadena trades at a 4.2% cap rate, one of the lowest cap rates in the market.

By Kelsi Maree Borland | October 30, 2019 at 04:00 AM

A medical office building in Pasadena has traded hands at a 4.2% cap rate, one of the lowest cap rates for medical office in the market. A private buyer purchased the 21,220-quare-foot building for $11.75 million.

The two-story building is strategically located near the Huntington Hospital. Current rents are below market, and the investor plans to negotiate a new long-term lease with the tenant upon expiration of the lease.

Nicholas Borrelli, a real estate broker affiliated with Coldwell Banker Commercial, represented the buyer in the deal.

NOT FOR REPRINT

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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