March 24, 2022 9:00 AM
Newmark announces it has completed the $8.6 million sale of Shadow Professional Center, a two-story, 80% leased, 41,849-square-foot medical office building located in Las Vegas, Nevada’s quickly growing Medical District. Newmark Managing Director Mark Schuessler and Senior Managing Director Mike Tabeek represented the seller, Fullerton Properties. The buyer was Cypress West Partners.
“We continue to see historic demand from both private and institutional investors for medical assets across the western region,” said Schuessler. “The Newmark Private Capital Group ran a competitive process that resulted in multiple offers above asking with the most aggressive bids coming from private buyers based in Southern California.”
Shadow Professional Center is strategically located within the Las Vegas Medical District (LVMD) which is anchored by several hospitals, specialty facilities, and major educational institutions, including Valley Hospital and the future UNLV School of Medicine, both located just one block from the property. This highly concentrated medical submarket includes several other synergistic tenants such as University Medical Center (UMC), UMC Trauma Center, the UNLV School of Dental Medicine, the Milan Institute, Southern Nevada Health District Lab, Southwest Medical Surgical Center, Horizon Specialty Hospital of Las Vegas, among many others, all within a few block radius.
“Shadow Professional Center is well positioned to benefit from the brand-new UNLV School of Medicine that will provide another anchor to the growing Las Vegas Medical District,” said Tabeek.
According to Newmark’s Global Healthcare Services specialty practice group, Medical Office Building (MOB) transactions had a strong finish to 2021 with $4.8 billion in transaction volume during the fourth quarter. This represented a 14% increase in transaction volume compared to the fourth quarter of 2020. The $4.8 billion in transaction volume is the third-largest quarterly amount over the past five years. More investors are entering the MOB asset class and as a result, cap rates compressed to 5.9% for the quarter. The tightening of the market drove the average price per square foot to $389, its highest level over the past five years.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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