OrbVest and Wythe, feeling medical office is hot, buy 2 properties in East Windsor for $20M

Purchase 300A, 300B Princeton Hightstown Road, 80,000-square-foot multitenant Class A medical office portfolio, from Gordon Group

It makes sense: While the country looks to come out of the pandemic, medical office buildings will be hot. At least, that’s the way OrbVest, a global real estate company, sees it.

Last week, OrbVest, in partnership with Wythe Medical Properties, purchased 300A and 300B Princeton Hightstown Road, a two-building, 80,000-square-foot multitenant Class A medical office portfolio in East Windsor, for $20 million from Linden-based the Gordon Group.

OrbVest CEO Martin Freeman said the deal worked on a number of levels.

“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,” he said.

“Princeton Hightstown complex is a great match for our portfolio. 100% 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.”

OrbVest has a strong track record and a portfolio of specialized medical real estate under management of more than $340 million. The firm acquires profitable medical office commercial buildings in fast-growing locations across the United States, raising equity from limited partners from over 20 countries around the globe.

Managing Director Kim Kretowicz, who is a designated fellow within the Colliers Healthcare Services Group, represented both seller and buyer in the disposition/acquisition. And she, too, is all-in on medical office buildings.

“This black swan event — COVID — has underscored the investment case for medical office buildings by demonstrating its ability to offer flight to safety,” she said. “The asset class has many tail winds blowing in its favor, creating an inordinate amount of capital chasing MOBs.

“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.”

The Gordon Group and partners have collectively developed, owned and managed over a hundred MOBs totaling over 2 million square feet, at one point having the distinction of being the largest medical office owner in New Jersey.

In addition to its MOB portfolio, the firm represents institutional clients, public work developments, health care systems and private specialty practices in project development, general contracting, construction management and the design and build of industrial, retail, office, public works and institutional facilities.