Investment Sales · Medical Office & Healthcare
Medical office and healthcare property sales. Los Angeles.
Single-tenant MOBs, multi-tenant medical campuses, surgical centers, and life sciences. Specialized buyers, specialized underwriting, physician-led negotiations.
Why healthcare is different
Healthcare real estate is a credit-tenant business that happens to involve buildings.
Medical office is a defensive asset class with a buyer pool that does not behave like other commercial real estate. Hospital systems consolidating, private equity rolling up specialty practices, and REITs hunting for credit-tenant medical assets all underwrite differently than your standard multifamily or office buyer.
The wrong broker treats a medical building like a generic commercial transaction. The right broker reads the lease the way a healthcare CFO would, knows which buyer pool will pay the highest cap rate for which tenant credit profile, and structures the marketing around that match. ARCA represents hundreds of private practice physicians and healthcare organizations. We combine brokerage execution with investment-level financial analysis and a deep understanding of where real estate strategy intersects medical practice growth.
How it works
An ARCA-run healthcare engagement, start to finish.
- Practice Assessment & Growth Planning. Evaluate current practice operations, growth objectives, staffing expansion, recruitment plans, and capital needs. Real estate strategy is downstream of practice strategy.
- Site Selection & Market Analysis. Identify and analyze locations against patient demographics, referral patterns, competitor positioning, hospital affiliations, and lease versus purchase opportunities.
- Ownership vs. Lease Analysis. Model financial implications of ownership against lease, considering practice stability, financing availability, tax strategy, and the physician owner’s wealth-management horizon.
- Transaction Execution. Lease negotiation, property purchase, or ownership transition with coordinated legal, tax, and lender support. Owner-to-MD throughout.
- Portfolio Strategy. Long-term real estate strategy aligned with practice growth, succession planning, MSO partnership opportunities, and physician wealth transfer.
Decision drivers
What actually moves the needle on a healthcare deal.
Most physician-owners and operators do not have a clean separation between practice economics and real estate economics. The two are linked. We surface the linkages early so the deal you do reflects the practice you are building.
- Tenant credit profile, hospital affiliation, and operating performance trend
- Lease structure (NNN, modified gross, percentage rent) and remaining term against capital expenditure cycle
- Workflow design and patient flow optimization for the existing or proposed footprint
- Regulatory compliance: ADA accessibility, medical waste handling, HVAC and infection control, plus state-specific medical building requirements
- Payer mix, reimbursement trends, and practice profitability over a 5- to 10-year horizon
- MSO partnership opportunities, private equity rollup activity, and consolidation trends in the relevant specialty
- Long-term positioning, succession planning, and wealth transfer implications for the physician owner
Frequently asked
Healthcare property questions we answer most often.
Should physicians own or lease their medical office space?
Both have merit. Ownership builds equity, captures appreciation, and provides tax shelter through depreciation, but ties up capital and adds operational complexity. Leasing preserves liquidity for practice investment and protects optionality if the practice relocates or sells. The right answer depends on practice stability, financing availability, the physician owner’s long-term location certainty, and their broader wealth-management strategy. We model both scenarios with real numbers before recommending a path.
How does real estate strategy fit into medical practice growth?
Real estate directly shapes practice growth. The right footprint enables physician recruitment, supports specialty expansion, and signals stability to referring physicians and payers. The wrong footprint constrains hiring, frustrates patient flow, and erodes margin. Real estate decisions made today set the operating envelope for the next decade of practice strategy, which is why we treat the real estate conversation as a practice strategy conversation.
What makes healthcare real estate different from traditional commercial real estate?
Healthcare buildings have specialized infrastructure (medical-grade HVAC, plumbing, electrical, waste handling) that drives both build-out cost and tenant lock-in. Tenant credit analysis runs through hospital affiliations, payer mix, and reimbursement environment, not just personal guarantees. Buyer pools are specialized: REITs, healthcare-focused private equity, hospital systems, and physician-investor groups, each with different return targets and underwriting frameworks. The broker who treats it like a generic commercial deal leaves money on the table.
How are medical office cap rates trending in Los Angeles?
Medical office has held cap rates more tightly than other commercial asset classes through the recent rate cycle, reflecting demographic tailwinds and tenant defensiveness. Single-tenant, hospital-affiliated MOBs with credit tenants and long lease term continue to trade in the low-to-mid 6s; multi-tenant suburban MOBs trade wider depending on tenant mix and rollover exposure. We maintain a current view through ARCA’s SoCal Cap Rate Index and direct conversations with the active buyer pool.
What does an ownership transition look like for a retiring physician?
A planned transition typically combines a building sale (or sale-leaseback to a healthcare REIT), a practice sale or MSO partnership, and a coordinated tax strategy that may include a 1031 exchange, charitable remainder trust, or installment structure. The sequencing matters: real estate, practice, and tax decisions need to be coordinated, not handled separately. ARCA quarterbacks the real estate piece and coordinates with the physician’s legal and tax counsel.
Contact our Healthcare Practice Lead
Matthew Mazur
Medical office, healthcare campus dispositions, and physician-owner sale-leaseback strategy.
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Tell us about your healthcare property.
A confidential conversation about your medical office building, surgery center, or healthcare campus costs you nothing. We will bring the comp data, run the buyer underwriting, and give you a clear read on where the market is today, including which buyer pool will pay the highest cap rate for your tenant credit profile.
Owner-to-MD. No junior brokers.
Arbor Realty Capital Advisors is a licensed California real estate brokerage, CA DRE Corp. #01980430. This page is informational only and does not constitute investment, legal, or tax advice.
