AW Property's $171 Million Investment: A Move in Medical Office Real Estate

AW Property Invests $171 Million in Medical Office Buildings

AW Property Company has made headlines by acquiring the Bon Secours Medical Campus Collection for a staggering $171 million. This portfolio consists of six medical office buildings (MOBs), totaling a significant 405,945 square feet, situated in Richmond, Virginia. This acquisition was finalized on November 19, 2025, marking AW Property's first venture into medical office buildings this year, demonstrating their strategic approach to healthcare real estate investments.

A Closer Look at the Portfolio

The Bon Secours Medical Campus Collection is anchored by Bon Secours Mercy Health, a prominent healthcare provider operating extensive facilities across the U.S. The largest asset within the portfolio is the St. Mary’s South Medical Office Building, which encompasses 142,015 square feet. This property, located just seven miles northwest of downtown Richmond, showcases the trend towards larger medical facilities enhancing patient care and accessibility.

The remaining buildings in the collection include:

• St. Mary’s MOB Northwest - 88,408 square feet
• St. Mary’s MOB West - 41,882 square feet
• Memorial Regional MOB II - 59,240 square feet, Mechanicsville
• Memorial Regional MOB III - 42,957 square feet, Mechanicsville
• Richmond Community MOB - 31,443 square feet

The Growing Medical Office Sector

This acquisition comes at a pivotal time for the Richmond medical office market, which experienced nearly $51 million in investment sales during the first half of 2025 alone. This figure represents the highest six-month sales total recorded in the past four years, indicating robust demand in the healthcare real estate sector. Notably, the average vacancy rates decreased to 7.1 percent during the same period, showcasing a positive trend in net absorption of medical office spaces.

Strategic Implications

AW Property's disciplined investment strategy continues to pay dividends as they navigate the competitive landscape of healthcare real estate. By focusing on high-quality medical office buildings, they align themselves with long-term trends of increased healthcare demand and the necessity for accessible medical services. As the healthcare system evolves, AW Property is positioning itself as a leader in this essential market space.

Conclusion

This latest acquisition not only reflects AW Property's commitment to growth but also aligns with broader trends seen nationwide in the medical office sector. Investors and stakeholders should keep an eye on this rapidly evolving market as it presents significant opportunities in medical real estate.