CBRE Advises on Sale of Two Property, On-Campus Medical Portfolio

CBRE advised on the sale of the Yakima Medical Portfolio, consisting of two medical outpatient buildings (MOBs) totaling 95,986-square-feet directly connected to MultiCare’s Yakima Memorial Hospital in central Washington’s Yakima Valley.

Chris Bodnar, Brannan Knott, Mindy Berman, Zack Holderman, Cole Reethof and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Marcus Yamamoto of Puget Sound’s Healthcare & Life Science Team to act as the exclusive advisors to the seller, along with CBRE’s Paul Carr who represented the buyer.

The portfolio consists of two on-campus, institutional-quality MOBs. West Pavilion I, located at 3003 Tieton Dr., totals 45,500 square feet, and West Pavilion II, located at 406 S. 30th Ave., totals 50,486 square feet. Both buildings are fully leased to MultiCare Health System, providing high-acuity services including a surgery center with four operating rooms, cardiology center, laboratory, OBGYN and lung care.

MultiCare Health System completed the acquisition of Yakima Valley Memorial Hospital and its associated clinics in 2023, welcoming more than 2,700 new employees. After the acquisition, the hospital was renamed as MultiCare Yakima Memorial Hospital, MultiCare’s 12th hospital. MultiCare’s comprehensive system includes more than 300 primary, urgent, pediatric and specialty care locations across Washington, Idaho and Oregon, as well as 13 hospitals, with 26,000-plus team members. Fitch Ratings most recently provided an “A+” rating for MultiCare Health System’s bonds.

“The hospital has occupied these buildings since 2005 and recently made a long-term commitment to continue to lease the facilities,” said Bodnar, CBRE’s Vice Chairman of the U.S. Healthcare Capital Markets practice. "These are mission critical assets to the hospital, housing some of their most important and profitable service lines at the campus.”

The Yakima Valley submarket is heavily served by MultiCare Health System and is the second largest private employer with more than 2,700 employees. As of Q1 2025, the average asking rates for available medical outpatient space reached a highwater mark of $17.29/NNN, a 7% year-over-year increase and an 18% increase since Q1 2022, highlighting the steady demand and high tenant retention ratios of the submarket. Yakima boasts a low vacancy rate of 6% stemming largely from many of the MOB facilities being occupied directly by MultiCare or its affiliated physician practices.