Anchor Health Properties Acquires Chestnut Funds

January 6, 2026

The firms have previously collaborated on $2 billion worth of projects.

Health care real estate firm Anchor Health Properties has acquired a majority interest in Chestnut Funds, a longtime investment partner, for an unspecified price. Chestnut Funds has been renamed Anchor Health Capital and will function as a fund advisory and investment management subsidiary of Anchor Health Properties.

Chestnut Funds had invested in health care real estate via seven commingled funds since 2012, as well as having direct and co-investments with entities like Anchor Health Properties. Acquiring the former Chestnut formalizes a relationship between the investors that has existed for more than a decade.

Starting in 2014, Anchor and Chestnut partnered on a number of investments and co-managed funds to support the development and the acquisition of nearly 100 health care facilities. Capital from Chestnut Funds, totaling about $2 billion, has been invested in assets acquired or developed by Anchor.

Moore & Van Allen advised Anchor during the transaction. Miller & Martin and Oaklyn Consulting advised Chestnut Funds.

Anchor has about 9 million square feet under management, focusing entirely on medical outpatient buildings and specialty health care facilities.

Other Anchor partnerships include one with BGO, whose joint venture in 2025 acquired Southwest Medical Village, a 71,394-square-foot medical office building in Austin, Texas, as well as Seymour Plaza, a 40,785-square-foot medical outpatient facility in Montclair, N.J.

MOB shows signs of strength

Medical office building trends are benefiting from strong fundamentals, including high occupancy rates and tenants that tend to be sticky. Also, a slack construction pipeline has helped support rent growth.

But all that would count for little without the most important force sustaining demand: an aging population that relies on outpatient care. The medical office sector thus outperformed other property types in 2025 and is expected to continue to do so, as the population continues to age.

Still, some uncertainty clings to the asset class, such as regulatory hurdles, which could pose significant challenges going forward. Capital market constraints have also been an obstacle to growth in recent years, though that pressure may ease if the Fed continues to bring down interest rates.