Lincoln, PGIM Expand MOB Holdings in Dallas, Phoenix

September 11, 2026

Medical Office Dallas Investment News More Phoenix Southwest West

The joint venture made its Valley of the Sun debut.

A joint venture between Lincoln Property Co. and PGIM has acquired three medical office buildings across the Dallas and Phoenix markets, totaling 116,957 square feet.

The Metroplex acquisitions total 103,000 square feet, consisting of 17051 N. Dallas Parkway in Addison, Texas, and the Rayzor Ranch Medical Building in Denton, Texas. SRP Medical previously owned the Addison asset, which is also the largest among the trio, clocking in at 79,825 square feet, according to Yardi Matrix.

The tenant roster includes Texas Health Resources and Methodist Health System, as well as several physician groups specializing in outpatient surgery, primary care, orthopedics, neurosurgery and pain management, among other medical practices.

Dallas-Fort Worth’s fundamentals, including strong population growth, expanding healthcare demand and proximity to leading health systems, are attractive, according to prepared remarks by PGIM Real Estate Head of U.S. Equity Soultana Reigle.

Lincoln and PGIM’s first MOB Phoenix investment

The Valley of the Sun deal marks Lincoln and PGIM’s first Phoenix investment following the creation of their MOB and senior housing joint venture last year. It consists of the 13,957-square-foot Surgery Center of Gilbert within the East Valley submarket.

A partnership between Banner Health, Atlas and physician surgical partners occupy and operate the property, which is fully leased on a long-term basis to Banner, one of the largest non-profit health systems across the U.S. The building encompasses five operating rooms, six pre-op rooms and several post-anesthesia care units.

Phoenix is among the most competitive and sought-after MOB markets across the U.S., benefiting from Arizona’s population growth and its ability to generate demand for specialized outpatient care, Lincoln Executive Vice President John Orsak said in prepared remarks.

The same competition can be found at a macro level as some of the largest owners of commercial real estate coalesce investment around high-quality medical office assets. The demand resulted in a repricing and cap rate compression, with the figure decreasing 35 basis points year-over-year to 6.8 percent during the second quarter, according to a Cushman & Wakefield report.

Medical office transaction volume ticked up a solid 21 percent annually to $6.7 billion during the first half of 2026; however, the total included Tranches 4-6 of Welltower’s $7.2 billion recapitalization agreement, which amounted to $689 million, the report shows.