CBRE Closes 1031 Exchange for 2 MOB Assets
The properties are in Phoenix and San Francisco.
SSP Investments has acquired two medical office buildings, in Phoenix and metro San Francisco, for $26.2 million as part of a 1031 exchange. CBRE arranged both deals on behalf of the Bay Area-based family office.
The assets that traded are a 42,067-square-foot medical outpatient facility in Phoenix and a 27,200-square-foot building in San Rafael, Calif. Both properties were fully leased at the time of sale.
The Phoenix property traded for $17 million. The building, which is leased to SimonMed Imaging and came online in 2005, is located at 8921 W. Thomas Road, across the road from the 317-bed Banner Estrella Medical Center. Downtown Phoenix is some 13 miles southeast. Other medical providers in the area include Northpark Health & Rehabilitation, Heart One Associates and ClearSky Rehabilitation Hospital of Avondale.
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The second facility, in San Rafael, traded for $9.2 million. A private individual previously owned the asset, according to Yardi Matrix information. Kaiser Permanente leases the property, using it for its Kaiser’s Psychiatry & Addiction Medicine Services.
Completed in 1993 at 111 Smith Ranch Road, the two-story building is less than 1 mile from Kaiser’s regional headquarters and 22 miles from downtown San Francisco. Other medical providers in the area include MarinHealth Medical Center and Kentfield Hospital.
Medical office sector sales reach new heights
In 2025, the medical office building sector saw a 35 percent increase in annual investment volume, reaching $12.6 billion, according to CBRE research. This figure was the highest annual total since 2022.
The list of high-volume deals from late last year includes AW Property Co.’s acquisition of the Bon Secours Medical Campus Collection, totaling 405,945 square feet. Healthcare Realty Trust Inc. sold the six Richmond, Va., assets for a combined $171 million.
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