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ALEXANDRIA, VA-A medical office building here has traded for $10 million, or $179 per square foot. Located at 5249 Duke St., the sale was an off market transaction brokered by Northmarq’s Jim Kornick, Jerry Burg and Matt Clinebell. The seller was not included in the deal information, but public records show the building was managed by Redwood Commercial. The buyers are doctors who invest in local medical buildings. They have a practice nearby and plan to relocate to the Landmark Professional Building, which this property is called, Kornick tells GlobeSt.com. The building traded at a 8.3% cap rate. There is ground floor retail in the 60,432 square foot building.

There have been few medical office trades in the area; even fewer developments. In the latter category, Seavest, an investment management firm focused on healthcare real estate assets based in White Plains, NY, recently delivered its third medical office building in the area–a $24-million building that is 80% leased in the Inova Fair Oaks Hospital campus in Fairfax. Also in Fairfax, Gyrodyne Co. of America, a Long Island-based real estate investment trust, closed on Fairfax Medical Center for $12.89 million, or $221.84 per square foot earlier this year. It is the company’s first in the DC area.

Still, though, medical office buildings are a different breed than standard office–thus it is important to view the lack of activity through that prism. In general, MOBs don’t trade a lot, Kornick says. “They are very stable investments for doctors that typically keep them for decades–usually as long as their own practices run.”

That said, it is clear that activity has slowed in the DC area’s MOB asset class. More trades will hopefully come to market in the second half of the year, Kornick says. “The expectation is that the health systems will be sellers–they have a lot of pressure on them right now financially.” Buyers, for their part will find that there is a lot of capital out there that wishes to invest in MOBs, he adds.

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