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Kansas medical outpatient building (MOB) portfolio.
The MOB consists of three single-tenant buildings that are 100% leased and occupied by College Park Family Care, a multi-specialty group that is a part of HCA Healthcare. It comprises 66,651 square feet.
The LevinPro HC team spoke with Christopher Stai, Managing Director of HREA, who was able to provide insight into the transaction. HREA, based in Raleigh, North Carolina, with offices in San Diego, Nashville and Denver, is a leading advisor in the healthcare real estate sector, specializing in providing healthcare providers, investors and developers with acquisition, disposition and capitalization strategies throughout the United States.
The buyers were Kobalt Investment Co. and Blue Drake Capital
Kobalt Investment Co. provides commercial real estate investment opportunities for institutional partners and investor relations.
Blue Drake Capital is a privately held real estate investment and development company headquartered in Dallas, Texas. Blue Drake acquires and develops all asset types with a focus on retail, office and healthcare. Blue Drake’s principals have directly managed more than $700 million in transaction volume across multiple real estate categories.
The seller was College Park Associates LLC, a group of physicians. Stai noted that the physicians “originally developed the MOB to serve their large multi-specialty practice, which has since been acquired by HCA.”
The financial terms were not disclosed. However, Stai said, “The overall valuation reflected a shorter
Weighted Average Lease Term (under four years), and the anticipated capital improvements required for the facilities. That said, the strength of the physician group, HCA’s affiliation and the market fundamentals supported a strong valuation.”
HREA began working on this transaction a little over a year ago and was referred by a past client. Overall, the transaction was completed with little challenges or regulatory issues.
“However, the transaction did require certain lease modifications to meet the requirements of the buyer’s equity partner and lender, which was a key part of the closing process,” said Stai.
Regarding the seller, Stai also spoke about the strategic benefits of selling the MOB to a real estate investment firm, including removing Stark Law compliance risks. Stark Law is the common name for a set of laws that bars physicians from referring patients for 'designated health services' covered by Medicare or Medicaid to entities where the physician or an immediate family member has a financial interest.
“The sale aligned the real estate with a group committed to implementing a capital improvement plan that will enhance the facilities for HCA, its providers, staff, and ultimately, the patients,” said Stai. “It was a great example of a transaction that created value for all parties involved — the type of outcome we always aim to deliver.”
According to data captured in the LevinPro HC database, 64 MOB transactions have been announced since the start of 2025. In 2024, 212 MOB deals were reported and in 2023, there were 198, indicating a steady recovery in transaction activity.
This successful engagement marks HREA’s fourth MOB advisory assignment of 2025. In 2024, HREA completed seven transactions, including two ambulatory surgery centers, two MOBs, one urgent care center and one micro-hospital leased to Dignity Health
Currently, HREA is engaged on 12 separate client
assignments totaling approximately $251 million in potential transaction value. This robust pipeline is a positive indicator for 2025, especially as the investment market continues to stabilize following the elevated interest rate environment of the previous two years.
When speaking about the state of the MOB M&A market, Stai expressed a cautiously optimistic outlook.
“Given the recent uncertainty surrounding tariffs and broader market volatility, we would have expected some hesitation in the market,” said Stai. “However, that hasn’t been the case. We’re seeing a stronger appetite from groups that had been on the sidelines over the past couple of years and are now feeling more ebullient about making make acquisitions. With the continued convergence in the bid-ask gap between buyers and sellers, investor sentiment toward medical real estate remains very positive, which should help drive increased transaction volume as the year progresses.”
Stai went onto say that the fundamentals of the healthcare real estate market “remain resilient”, especially in uncertain times. He drew attention to the idea that for investors, the sector continues to “serve as a defensive and stable asset class relative to broader commercial real estate.” While the interest rate environment has improved from this time last year, spreads and the potential rising cost of labor/ construction continue to present challenges for the market, especially concerning new development. With this, Stai anticipates that provider groups may be prompted to invest in their existing real estate assets rather than seeking new development.
“We continue to see strong buyer interest in clinical real estate, driven by limited new supply and the ongoing demand for healthcare services,” said Stai, concerning the capital markets. “This transaction reflects those dynamics: aging infrastructure being upgraded, physicians monetizing their real estate, and investors positioning themselves in a high-demand, low-supply sector.”
Overall, this transaction underscores the ongoing strength and strategic evolution of the MOB sector.
across Arizona, Georgia, Kansas, New Mexico, North Carolina, Virginia and Texas, primarily offering private duty nursing services along with pediatric therapy, licensed health aide services and certified nurse assistant services.
Aveanna Healthcare, a portfolio company of Bain Capital and J.H. Whitney Capital Partners, is one of the largest pediatric home health care companies in the United States. It was formed with the merger of Epic Health Services and PSA Healthcare in March 2017. Aveanna went public through a $100 million IPO in April 2021. According to its fourth-quarter and full-year 2024 financial results, Aveanna's full-year (FY) 2024 revenue was more than $2 billion, and its FY 2024 adjusted EBITDA was $183.6 million.
The acquisition, expected to close in Q2 2025, will expand Aveanna's presence across seven states, including in two new markets (Kansas and New Mexico).
Edge Healthcare Partners and Bass, Berry & Sims served as Aveanna's advisors, while Cantor Fitzgerald & Co. and Ropes & Gray LLP represented Thrive SPC. Financial terms of the deal were not disclosed.
The transaction will be funded through a combination of common stock shares and cash from Aveanna's balance sheet. Funding the deal with both stock and cash shows a balanced approach, avoiding heavy debt. This means some dilution for shareholders but keeps debt levels in check. According to the original April 3 deal press release, Thrive SPC is also backed by Summit Partners, a growth investment firm with a strong reputation for backing promising healthcare enterprises, which adds credibility to the target's operational quality.
TUSK Practice Sales Advises on Dental Transaction
TUSK Practice Sales , a leading healthcare M&A advisor, announced that it advised Jacksonville Dental Specialists on its acquisition by Modis Dental Partners.
Jacksonville Dental Specialists provides a range of dental care, from preventative and cosmetic dentistry
to advanced dental implants. It has one location in Jacksonville, Florida. According to its website, there are two physicians on staff.
Modis Dental Partners offers administrative and specialized technology support to dental partners. Modis was launched by Chicago-based private equity firm Thurston Group in September 2023.
The transaction was led by Josh Swearingen, Director of Mergers & Acquisitions at TUSK Practice Sales. Alex Cherniavsky and Sam Lupton spearheaded the diligence and analytics efforts for TUSK. Terms were not disclosed.
Merck KGaA, Darmstadt, Germany Buys SpringWorks Therapeutics
Merck KGaA, Darmstadt, Germany announced that it is acquiring SpringWorks Therapeutics , a Stamford, Connecticut-based commercial-stage biopharmaceutical company focused on severe rare diseases and cancer. The transaction is expected to close in the second half of 2025.
SpringWorks is developed and commercializing OGSIVEO® (nirogacestat) as the first and only FDAapproved medicine for adults with desmoid tumors and GOMEKLI™ (mirdametinib) as the first and only FDA-approved medicine for both adults and children with neurofibromatosis type 1 associated plexiform neurofibromas. It is also advancing a diverse portfolio of novel targeted therapy product candidates for patients with both solid tumors and hematological cancers.
According to its most recent annual report, SpringWorks generated revenues of nearly $191.6 million during full year 2024, while EBITDA was reported as a loss of $280.7 million.
Merck KGaA, Darmstadt, Germany, a leading science and technology company, operates across healthcare, life science and electronics. It employes roughly 62,000 people.
Upon closing, the merger will immediately contribute
square feet and spans across 30 states nationwide.
Through the acquisition, Crown MedRealty Partners now owns 23 MOBs in Ohio and a total of 109 properties across 22 states. Its portfolio totals more than 2 million square feet of outpatient medical office space, according to a release from the firm.
MAX Surgical Specialty Management Makes Second Acquisition of 2025
MAX Surgical Specialty Management announced that it acquired Rothman and Kim Oral & Maxillofacial Surgery for an undisclosed price. This transaction was announced alongside MAX closing on a $77 million senior credit facility provided by Freeport Financial Partners, LLC.
Rothman and Kim Oral & Maxillofacial Surgery has one location in Philadelphia, Pennsylvania. According to its website, the practice is run by a team of two physicians: Dr. Marc Rothman and Dr. David Kim.
MAX Surgical Specialty Management provides growth capital and administrative support services to partner oral and maxillofacial surgery practices. MAX supports 28 surgeons in 21 locations across four states. It is backed by MedEquity Capital, RF Investment Partners and Kian Capital
Smile Doctors Acquires 6 Dental Practices
On April 24, Smile Doctors, LLC, backed by private equity firms Linden Capital Partners and Thomas H. Lee Partners, announced that it expanded its presence with the acquisition of six dental practices.
Hatcher & Frey Orthodontics is based in one location in Chesapeake, Virginia. According to its website, there are four physicians on staff.
Based in Johnson City, Tennessee, Local Orthodontics is run by one physician who is supported by a team of nine.
Zambrano Orthodontics has three locations in the
Miami, Florida MSA. According to its website, there are two physicians on staff.
Based in Alexandria, Virginia, Hughes Orthodontics is run by a team of three physicians.
GO Orthodontics has five locations (four in Mississippi and one in Tennessee). According to its website, the practice has four physicians on staff.
Eberle Orthodontics is based in Louisville and LaGrange, Kentucky. It is run by one physician who is supported by a team of 10.
Smile Doctors is an orthodontic dental support organization with more than 450 locations in 31 states. It was founded in 2015.
Additionally, announced alongside these transactions, Dr. Amanda Gallagher, in partnership with Smile Doctors, opened a de novo office in The Village of Cross Keys in Baltimore, Maryland. Smile Doctors now supports more than 550 practice locations across 36 states. Terms were not disclosed.
SportsMed Physical Therapy Acquires Mendham Physical Therapy in New Jersey
SportsMed Physical Therapy announced acquisition of Mendham Physical Therapy, a physical therapy clinic located in Mendham, New Jersey. This acquisition brings SportsMed’s total number of clinics to 45 and strengthens its presence in New Jersey.
Founded in 2004, SportsMed Physical Therapy is a multi-disciplinary physical therapy company with locations across New Jersey and Connecticut. It is a portfolio company of Hildred Capital Management, a New York City-based investor of lower middle-market healthcare companies.
The clinic will continue to serve the local Mendham, New Jersey community, now supported by SportsMed's full suite of rehabilitative services. Holland & Knight served as legal advisor to SportsMed.
featured speaker in the past. “When you have payors, providers, advisors, private equity and even venture studios all working out deals and pushing the industry forward, you’ll see a lot of innovation.”
Johnson has 25 years of healthcare investment banking and private equity experience, completing more than $1 billion in transactions of all kinds. At Lawrence, Evans & Co., he’s responsible for deal sourcing, valuations and securing financing.
The HCMIS conference is taking place during a tumultuous period for the healthcare M&A market and overall industry. According to data captured in the LevinPro HC platform, quarter-over-quarter deal volume remained stagnant in the first three months of 2025, underperforming against the expectations held in late 2024. With a new pro-business administration, analysts and business experts assumed deal volume would accelerate, but that is not the case so far.
“It’s a challenging time for the healthcare industry,” said Johnson. “We know tariffs are causing a lot of issues for medical device manufacturers and possibly pharmaceutical companies on the higher end of the market, but on the middle- and lower-end, there are serious concerns about cuts to Medicaid, especially at the state level. And some other factors, like unfavorable valuations for sellers, have taken a toll on volume and slowed the pace of deals.”
But facing these market challenges and finalizing deals is where conferences like HCMIS come in. According to Johnson, nearly $400 million in deals have been completed at HCMIS, and for anyone looking for more information to navigate changes in the industry, there’s a myriad of panels and presentations. The 2025 agenda is still being ironed out at the time of writing, but in 2024, the agenda focused on private equity investments, AI in healthcare, value-based care and cybersecurity in healthcare, with speakers from companies such as Cleveland Clinic and Cain Brothers. We expect to see a return of some of these topics, especially AI, but also new talks focused on trends like Medicare Advantage.
According to Johnson, the host city of the conference, Columbus, tagged as “The Smart Health City” and considered the fastest growing city in the country, is as crucial as the conference itself.
“Columbus has been a real incubator for healthcare innovation and creativity,” he said. “With organizations like Cardinal Health, Quantum Health, Forge Biologics, Drive Capital and LOUD Capital, and the research coming out of The Ohio State University, Nationwide Children’s Hospital and Battelle, there is a lot of emerging technologies and medical breakthroughs that could shape the market and care continuum.”
At last year’s HCMIS, Johnson spoke at length about this in his opening remarks, studying the pending acquisition of Akron, Ohio-based Summa Health by Health Assurance Transformation Corporation (HATCo), which is owned by General Catalyst, calling it “the ultimate clash between one of the largest venture funds and one of the state’s largest integrated health care delivery systems.”
On top of the $485 million purchase price, HATCo has committed $350 million in capital funding to invest in emerging technologies and adapt to a value-based care environment.
Columbus-based organizations have also been active in the healthcare M&A market recently, as some of our readers might recall. OhioHealth acquired two hospitals in 2024, and Cardinal Health went on a shopping spreee, buying GI Alliance for $2.8 billion, Advanced Diabetes Supply Group for $1.1 billion and Integrated Oncology Network LLC for $1.1 billion.
“We know Ohio is considered a fly-over state, but the amount of activity we see from the companies here in Columbus and the region (including Cleveland and Cincinnati) should be in the same discussion as Boston, Nashville, or some cities in California,” said Johnson. “And attendees are going to see that on full display at HCMIS.”
Top Deals April 2025 Hospitals
Cedar Park Regional Medical Ctr. Private Ascension
Cedar Park, TX St. Louis, MO
In Brief: Cedar Park Regional Medical Center is a 126-bed short-term acute care hospital with a Primary Stroke Center and a Level II Neonatal Intensive Care Unit. It is being sold by Community Health Systems.
Top Deals April 2025
9-building portfolio
IA; AZ; PA; OH N/A
Medical Outpatient Building
In Brief: The sale includes nine medical outpatient buildings, located in Des Moines, Iowa, Tucson, Arizona, Pittsburgh Pennsylvania and Akron, Ohio. The anchor tenants are larger regional hospital systems including Methodist UnityPoint, University of Iowa Health, MercyTrinity Health and St. Mary’s-Tenet Health. Tenants also include dominant, regional oncology, orthopedic and cardiology practices. All the buildings are located on or adjacent to hospital campuses. The total square footage was not disclosed.
Top Deals April 2025
Andlauer Healthcare Group Inc.
AND UPS
Vaughan, Ontario Atlanta, GA
Other Services
In Brief: Andlauer Healthcare Group Inc. (AHG) is a Canada-based supply chain management partner specializing in third-party logistics and delivery solutions for the healthcare sector. The company's 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. AHG's specialized transportation services in Canada, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients' healthcare transportation needs. The company also provides specialized ground transportation services, primarily to the healthcare sector, across the 48 contiguous U.S. states.
Top Deals April 2025
Biotechnology & Pharmaceuticals
SpringWorks Therapeutics, Inc. NASDAQ: Merck KGaA ETR: MRK 4/28/2025
$3,900,000,000 Stamford, CT SWTX Darmstadt, HE
In Brief: SpringWorks Therapeutics, Inc. is a Stamford, Connecticut-based commercial-stage biopharmaceutical company focused on severe rare diseases and cancer.
Top Deals April 2025
Dotmatics Private Siemens AG OTCMKTS: SIEGY 4/2/2025
eHealth
$5,100,000,000 Woburn, MA Munich, Germany
In Brief: Founded in 2005, Dotmatics is a leader in R&D scientific software connecting science, data and decision-making. Dotmatics is a global team of more than 800 people dedicated to supporting its customers in more than 180 countries. The company is backed by Insight Partners.
