NHP Eyes $1.1B Exit From MOB Sector

National Healthcare Properties Inc. has entered into a definitive agreement to sell a portfolio of 40 outpatient medical properties for approximately $531 million. The company also signed a nonbinding letter of intent to sell the remaining four outpatient medical facilities for approximately $11 million.

Through the latest agreement, NHP would complete its exit from the medical office segment as the REIT is seeking to expand its senior housing portfolio. The sale is expected to close during the fourth quarter of 2026.

The transaction carries a 6.9 percent nominal cap rate based on trailing 12-month in-place cash net operating income. After recurring capital expenditures and other customary closing adjustments, the company expects an economic cap rate of 6.5 percent.

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NHP has retired all debt associated with the medical office portfolio. The company expects to receive nearly $511 million in cash proceeds before transaction-related and prorated portfolio operating expenses, subject to customary adjustments. The REIT plans to use the proceeds to repay its revolving credit facility, fund senior housing acquisitions and support other general corporate purposes.

The company expects the transactions to leave it with cash holdings approximately equal to its total debt, which primarily consists of $300 million in outstanding unsecured term loans.

NHP has also signed purchase and sale agreements and nonbinding letters of intent covering $244 million in senior housing acquisitions. The deals comprise 724 units, primarily assisted living and memory care, with estimated weighted average year-one and year-three cap rates of 7.2 percent and 8.4 percent, respectively.

NHP plans full medical office sector exit

The news is part of the company’s broader strategy to dispose of its entire medical office portfolio. In May, the company entered into an agreement to sell an 86-building portfolio for nearly $528 million. Earlier this month, the REIT completed the sale of 30 properties from that portfolio for $198 million.

As of June 2026, NHP’s medical office portfolio comprised 130 properties across 26 states, totaling 3.7 million square feet of gross leasable area, according to the company’s website. The portfolio was 93 percent leased, with a weighted average remaining lease term of 5.3 years.

Large MOB portfolio sales keep MOB investors busy

The U.S. health-care real estate sector started 2026 with improving capital market conditions, growing lender appetite and resilient operating fundamentals supporting investment activity, among other medical office building trends. During the first six months of the year, transaction volume accelerated, supported by strong demographic trends and steady demand for outpatient care, according to a recent report by Cushman & Wakefield.

The sector recorded $6.7 billion in transactions through June, up 21 percent year-over-year, the report shows. Average deal size increased 43 percent to $20 million, reflecting continued demand for larger, high-quality assets. Second-quarter sales volume totaled $2.9 billion, down 2 percent year-over-year, though overall investment activity remained elevated.

Health-care investment has also been supported by large portfolio transactions, including the sale of Tranches 4-6 within Welltower’s $7.2 billion recapitalization deal. The portion sold for $689 million, according to the report. Last year, the company agreed to sell an 18 million-square-foot medical office portfolio spanning 34 states to a joint venture between Remedy Medical Properties and Kayne Anderson Real Estate. The transaction is expected to make the partnership the largest U.S. owner of such assets.

More recently, Bridgepoint Group, went under contract to buy Kayne Anderson Real Estate, in a $1.4 billion deal. The sale is expected to close by year-end and would mark the London-based company’s entry into the U.S. market.