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Paramus MOB Sells for $43.8 Million, Highlights Healthcare Real Estate Boom

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  Published in Business and Finance on Saturday, February 14th 2026 at 19:52 GMT by NJ.com
      Locale: UNITED STATES

Paramus, NJ - February 15, 2026 - A recent real estate transaction in Paramus, New Jersey, is shining a spotlight on the robust and steadily growing medical office building (MOB) market. A private investor closed on the purchase of a 33,000-square-foot MOB located at 140 Chestnut Street for $43.8 million, demonstrating continued strong demand for healthcare-related real estate assets. The deal, brokered by Cushman & Wakefield and finalized yesterday, February 14th, involved the sale from a partnership between Harrison & Bates and Artemis Real Estate Partners.

This sale isn't an isolated incident. Experts are increasingly observing a surge in investment activity within the healthcare real estate sector, particularly for strategically located, fully-leased MOBs like the one in Paramus. Several factors are fueling this trend. The aging baby boomer population, coupled with advancements in medical technology and a growing emphasis on preventative care, are driving consistent demand for healthcare services. This, in turn, necessitates expansion of medical facilities and specialized office spaces.

RWJBarnabas Health, the sole tenant of the Chestnut Street building, is a cornerstone of healthcare provision in New Jersey. Their long-term lease provides the investor with a stable and predictable income stream, a key characteristic highly sought after by those looking to invest in the MOB space. The building's full occupancy further minimizes risk, making it an especially attractive asset. Robert Faulk of Cushman & Wakefield, who represented the seller, highlighted this in a statement, emphasizing the "strong tenant and long-term lease" as critical factors in the deal's success.

Beyond Paramus: A State-Wide and National Trend

The appeal of medical office buildings extends beyond Paramus and the state of New Jersey. Nationally, the MOB sector has consistently outperformed other commercial real estate classes in recent years, exhibiting resilience even during economic downturns. This is attributed to the non-discretionary nature of healthcare spending - people will prioritize healthcare regardless of economic conditions. This inherent stability makes MOBs a comparatively safe haven for investors.

However, the New Jersey market is particularly noteworthy. The state's high population density, combined with a strong healthcare infrastructure and a relatively limited supply of premium MOBs, has created a competitive landscape for investors. Areas like Paramus, with its affluent demographics and convenient access to major transportation routes, are particularly desirable.

Looking Ahead: What Does This Mean for the Future?

The $43.8 million transaction signals a likely continuation of the upward trend in MOB valuations. We can expect to see increased competition for well-positioned assets, potentially driving prices even higher. Developers are responding by exploring opportunities to build new MOBs, but navigating zoning regulations, securing financing, and overcoming construction hurdles can be challenging. Existing MOBs, particularly those in prime locations, are therefore increasingly valuable.

Experts predict a shift in investment strategies as well. While large institutional investors have historically dominated the MOB market, we're seeing a growing presence of private investors and high-net-worth individuals seeking stable, long-term returns. This increased competition is likely to lead to more creative deal structures and a greater focus on value-add opportunities - such as repositioning or expanding existing facilities.

The rise of telehealth, while presenting some disruption to traditional healthcare delivery, isn't necessarily a threat to the MOB market. In many cases, telehealth services complement in-person care, requiring physical spaces for technology integration, administrative support, and specialized procedures. Furthermore, the growing demand for outpatient and specialized care facilities further supports the need for strategically located MOBs.

The sale of the Paramus medical office building serves as a clear indicator: the future of healthcare real estate remains bright. Investors are recognizing the inherent stability and growth potential of this sector, and the competition for high-quality assets will likely intensify in the months and years to come. This transaction, and similar ones across the country, are worth watching closely as they shape the landscape of healthcare delivery and real estate investment.