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The basics:

• Toms River medical office portfolio sale tops $13 million
• Two buildings total 55,680 square feet
• Portfolio 99% leased at closing
• Sale generated multiple offers from investors

Investor demand remains strong in the medical office building space, evidenced by a recent Toms River transaction with a $13.6 million price tag.

Colliers announced the sale of the Holiday City Medical Portfolio located at 1 and 3 Plaza Drive in Ocean County June 12.

The two-building portfolio totals 55,680 square feet and is 99% leased, according to the global diversified professional services and investment management company. Vice Chair Jacklene Chesler, Senior Vice President Patrick Norris and Transaction Manager Brittany Leventoff facilitated the sale. Colliers identified Lakewood-based Horizon Equities as the seller. It did not disclose a buyer.

The properties sit within a growing medical destination, inside the state’s fastest-growing county. Colliers identified the thoroughfare as attracting several new medical practices, along with properties situated on the adjacent Mule Road.

“While higher rates have forced a broader pricing reset across commercial real estate, medical office continues to outperform due to its necessity-based demand and stable tenancy, ” Chesler said. “We’re seeing disciplined capital step in for well-located, outpatient-oriented assets – especially those tied to strong healthcare systems – where long-term fundamentals remain intact.”

Looking ahead at 2026, PwC anticipated medical office buildings would continue to outperform. The report cited demographic tailwinds, like the “silver tsunami,” along with outpatient demand, describing MOBs as a “core defensive asset.” And, while occupancy continues to climb, construction of new space remains challenging due to rising costs, in particular.

Reflecting broad appeal, Colliers said the Holiday City Medical Portfolio attracted more than half a dozen offers.

1 Plaza Drive

• 37,621 square feet
• 6.16 acres
• 98% occupied at time of sale
• Tenants include: Labcorp, Physician’s SurgiCenter, University Radiology Group and Asetera Cancer Care

3 Plaza Drive

• 18,059 square feet
• 5.02 acres
• 100% leased to 17 medical tenants
• Occupiers include: Premier Dermatology Clinic, Elite Podiatry and South Jersey Physician Associates. Colliers noted many tenants have longstanding operations at the property.

Despite 3 Plaza Drive having less than one year of weighted average lease term, Colliers said the building generated significant investor interest, securing nearly a dozen offers from national medical funds, 1031 exchange buyers and regional investors. According to the firm, the selected buyer posted a non-refundable deposit to secure the transaction.

Commenting on the deal, Horizon Equities President Joe Kotler highlighted several recent additions to the tenant roster. Beyond Astera and HMH affiliate Jersey Shore Radiology, he also said, “we are in talks with other leading medical groups and healthcare systems who want to open practices in our other properties along Plaza Drive and Mule Road.”

Holiday City is a 55-plus retirement hub comprising more than 14,000 homes across five communities. Along with strong demographics, Colliers said it offers a built-in base for the nearby medical office building properties. The medical destination has access to major healthcare centers from RWJBarnabas Health, Hackensack Meridian Health and Children’s Specialized Hospital.

Ocean County is experiencing a significant wave of healthcare investment and development, and this portfolio sits at the center of it.
—Patrick Norris, senior vice president, Colliers

Added Norris, “Ocean County is experiencing a significant wave of healthcare investment and development, and this portfolio sits at the center of it.”

Outside Toms River, Colliers also recently closed a medical office sale at 14-o1 Broadway in Fair Lawn, along with 1 & 3 Eves Drive in Marlton. It is currently marketing a MOB in Oradell anchored by Surgicare of Oradell and New Century Imaging.