300 B Princeton Hightstown Road is part of a two-building 80,000-square-foot medical office portfolio in East Windsor. — Courtesy: Colliers International
By Joshua Burd
A developer has sold a two-building, 80,000-square-foot medical office portfolio in Mercer County, in a newly announced transaction by Colliers International.
Gordon Princeton Mab Associates, an affiliate of The Gordon Group, reaped $20 million from its disposition of the multitenant complex at 300 A and 300 B Princeton Hightstown Road in East Windsor. According to Colliers, a joint venture of Wythe Medical Properties LLC NJ and OrbVest purchased the portfolio.
“This black swan event — COVID — has underscored the investment case for medical office buildings (MOB’s) by demonstrating its ability to offer flight to safety,” said Kim Kretowicz, a managing director with Colliers. “The asset class has many tailwinds blowing in its favor creating an inordinate amount of capital chasing (medical office buildings). International investors, private equity funds and pension funds have joined the specialized health care REITs that have historically been the biggest aggregators of medical office properties.”
Colliers announced the deal Tuesday while noting that The Gordon Group and its partners have collectively developed, owned and managed over 100 medical office buildings spanning more than 2 million square feet. For its part, OrbVest manages a portfolio of specialized medical real estate valued at more than $340 million, while Wythe Capital LLC is a fully integrated owner, operator and manager of medical office buildings.
“We continue to believe that health care-related commercial real estate in the United States has proven its resilience before and during the pandemic and should continue its growth trajectory as an aging population and technological progress continue along its inevitable path,” said Martin Freeman, CEO of OrbVest. “Princeton Hightstown complex is a great match for our portfolio — 100 percent medical, with solid tenants and long leases in place, and a strategic location on the New Jersey Turnpike’s Interchange 8 between New York City and Philadelphia.”